Coatings of TiCrN ion-plated on a steel substrate was oxidized at $800^{circ}C$ in air, and their oxidation mechanism was presented. During oxidation, substrate elements and Ti and Cr in the coating always diffused outwardly to form the oxide scale. Simultaneously, oxygen from the atmosphere diffused inward1y to react with Ti and Cr to form $TiO_2$and $Cr_2$$O_3$, respectively. Also, the counter-diffusion of cations and oxygen resulted in some oxygen dissolution in the unoxidized TiCrN coating, and Fe dissolution in the oxide scale. When the Ti content in the coating was high, the $TiO_2$-forming tendency was strong, while when the Cr content was high, the $Cr_2$$O_3$-forming tendency was strong.