High velocity oxy-fuel (HVOF) spraying of Diamalloy 1005 powders mixed with WC particles onto steel (304) is considered and laser re-melting of the resulting coatings is examined. Laser re-melting process is modeled to determine the melt layer thickness while temperature increase is formulated using the Fourier heating law. The morphological and metallurgical analyses prior and post laser re-melting process are carried out using scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDS). X-ray diffraction (XRD) technique is used to determine the residual stress developed in the coating while the analytical formulation is adopted to predict the residual stress levels at the coating base material interface. The indentation tests are carried out to determine the Young’s modulus and fracture toughness of the coating prior to laser re-melting. Corrosion resistance of coating is measured using potentiodynamic polarization technique prior and post laser treatment process. The predictions of the melt layer thickness are in good agreement with experimental results. The presence of WC particles modifies temperature rise and its gradient in the coating while affecting the Young’s modulus, residual stress levels, and fracture toughness of the coating. The differences in the thermal properties of Inconel 625 powders and WC particles result in formation of small size cellular structure through polyphase solidification. WC dissolution in the central region of the large polycrystalline cells is observed due to the loss of carbon through carbonic gas formation. The results of corrosion tests prevail that significant improvement of corrosion resistance can be achieved after laser treatment process.