A novel TiAl3/Al2O3 composite coating was prepared on γ-TiAl alloy. The process included two steps: (1) TiAl3/Al2O3 composite powders were prepared by high energy ball milling of pure Al and nano-TiO2 powders, followed by a heat-treatment; (2) the as-prepared composite powders were deposited on γ-TiAl substrate by cold spray. The cyclic oxidation was conducted at 900°C to test the performance of the composite coating. The results showed that the composite coating had good crack resistance and effectively decreased the oxidation rate of the substrate.