Electrophoretic technique was used to deposit micro- and nano-sized aluminum nitride coatings on stainless steel surfaces by using a well-dispersed stable suspension produced by addition of AlN powder plus a small amount of iodine to ethanol. Parabolic regime governed the deposition. Electrophoretic deposition for 240s at 100V resulted in formation of a uniformly dense film on the top, but a porous inhomogeneous layer at the bottom. This was attributed to fast deposition of coarse particles and/or agglomerates at large electric fields. After drying, micro-sized particles led to a uniform crack-free interface while nano-particles resulted in fragmented non-cohesive layers. Weight loss measurements revealed higher drying rates for micro-layer as compared to nano-cover. This seemed owing to the larger pore sizes and lower specific surfaces of the former. Stress inducement by lateral drying of small capillaries led to crack initiation from the edges and its propagation across the surfaces. This resulted in fragmentation of the samples due to their delamination. Effect of deposition rate on particles packability was also investigated.