A joining of dissimilar metal combination faces significant problems such as poor strength and cracking associated with brittle intermetallic compounds(IMC) formed. An application of laser allows low heat input; leading to less dilution and smaller heat affected zone. The $CO_2$ laser overlay was conducted on an AC2B alloy with feeding Fe-based powders. The overlay area was significantly influenced from the travel velocity rather than the powder feeding rate. The interface between the overlay and substrate consisted of the hard and brittle IMC($FeAl_3,;Fe_3Al,;Fe_2Al_5$), which initiating and propagating the crack. The reciprocating test for the slide wear was conducted on a multi-pass overlay experiment. Comparing with the multi-pass overlay with no overlap, the overlay with 50% overlap showed better wear resistance.