A 2.5 KW Nd:YAG laser was employed to modify the surface of a AISI 1010 steel deposited with a precursor powder mixture of Fe, Ti, Cr and C. In-situ formation of TiC and chromium carbides [M7C3 (M = Fe, Cr) and Cr7C3] was observed as function of laser processing power at constant scan speed. Although TiC was present in all the samples, the chromium carbides were absent in samples processed at certain laser powers. Corresponding to this behavior, variation in mechanical properties of the coating was observed. The hardness and wear properties of the samples without chromium carbides was inferior in comparison to samples with both TiC and chromium carbides. (C) 2004 Kluwer Academic Publishers.