Incorporation of ceria particles into the Ni matrix was found to improve the corrosion resistance of pure Ni coatings. With the aim of further improving the corrosion resistance of Ni-ceria, yttria was doped with ceria and used as distributed phase. About 8-mol% yttria doped ceria (8YDC) particles synthesized by a solution combustion process were dispersed in a nickel sulfamate bath and electrodeposition was carried out to prepare Ni–8YDC composite coatings at various current densities. The microhardness of the composite coatings was determined. Optical microscopy confirmed the incorporation of 8YDC particles into the Ni matrix. Potentiodynamic polarization and electrochemical impedance spectroscopy were used to characterize the corrosion behavior of the Ni–8YDC coatings. Scanning Electron Microscopy (SEM) and Energy Dispersive X-ray Analysis (EDAX) were used to characterize the corroded samples. The results were compared with those for Ni and Ni–CeO2 coatings. The wear behavior of Ni–8YDC was studied. Wear tracks were characterized by MicroRaman Spectroscopy.