NiCrAlY coating was deposited on 3Cr13 stainless steel substrates by arc ion plating technique. This paper is to explore the feasibility of using NiCrAlY coating for the damping application and characterize the method that may be used in defining the vibration features of the coatings. The phases of the NiCrAlY coating were determined by X-ray diffraction (XRD) technique. The surface morphology and chemical composition of the NiCrAlY coating were analyzed by scanning electron microscope (SEM) and Energy Dispersive Spectrometer (EDS), respectively. The damping properties were characterized by DMA and sine sweeps. The damping properties of the substrate were considerably improved by the NiCrAlY coating.