Yttrium(Y) coating was incorporated by ion-plating method either directly on the TiAl substrate or after pack aluminizing on TiAl to improve the oxidation resistance of TiAl alloy. After Y-coating, heat treatment at low oxygen partial pressure was carried out. Performance of various coating was evaluated by isothermal and cyclic oxidation tests. A simple Y-coating without pack aluminizing can give a detrimental effect on the. oxidation resistance of TiAl alloy, because it enhances formation of $TiO_2$. On the other hand, a composite coating of aluminide-yttrium has shown excellent oxidation resistance. A continuous protective $Al_2O_3$ scale is formed on the aluminized TiAl, and Y-coating improves $Al_2O_3$ scale adherence and substantially prevents depletion of Al in the aluminide-coating layer.