A Cr 3 C 2 -NiCr composite scattered with graphite (several microns in size) has been produced by laser processing of powder mixture of Cr/graphite/Ni. The composite has been investigated with X-ray diffraction (XRD), scanning electron microscopy (SEM), energy dispersive X-ray analysis (EDX) and transmission electron microscope (TEM), and is found to be consisted of Cr 3 C 2 , γ-NiCr and graphite. The composite contains many different microstructures including planar, dendrite, feathery eutectic and re-melt zones sprinkled with graphite. The mechanism of the laser synthesis processing is based on the dissolving mechanism of graphite, and the solidification of the laser melt is deduced as: L→L+(Ni)→L+(Cr 3 C 2 )+(Ni)→(Ni)+(Cr 3 C 2 )+(C). The wear resistance of the composite is greatly improved due to the presence of the graphite. Whereas the corrosion resistance of the composite in a 0.2M H 2 SO 4 aqueous solution became worse than the same Cr content nickel alloy.