The microstructural changes of $NiCrAlY/ZrO_2$-$Y_2$$O_3$ composite coatings that were manufactured by air-plasma-spraying were investigated using XRD and SEM/EDS. The as-sprayed microstructure consisted of (Ni,Cr)-rich regions, ($ZrO_2$-$Y_2$$O_3$)-rich regions, and $Al_2$$O_3$-rich layers that were formed during spraying owing to the oxidation of Al in NiCrAlY. During oxidation between 900 and $1100^{circ}C$ in air, Cr in the (Ni,Cr)-rich regions diffused toward the $Al_2$$O_3$-rich layers, and oxidized to be dissolved in $A1_2$$O_3$-rich layers. The oxidation of Ni in the (Ni,Cr)-rich regions was less distinct, except at the outer surface of the coating.