AISI 1045 steel surface was alloyed with pre-placed ferrotitanium and graphite powders by using a 5-kW CO2 laser. In situ TiC particles reinforced Fe-based surface composite coating was fabricated. The microstructure and wear properties were investigated by means of scanning electron microscopy, transmission electron microscopy, and X-ray diffraction, as well as dry sliding wear test. The results showed that TiC carbides with cubic or flower-like dendritic form were synthesized via in situ reaction between ferrotitanium and graphite in the molten pool during laser cladding process. The TiC carbides were distributed uniformly in the composite coating. The TiC/matrix interface was found to be free from cracks and deleterious phase. The coatings reinforced by TiC particles revealed higher wear resistance than that of the substrate.