The current investigation is an effort of correlating the grain growth, crystallographic orientation and second-phase Y2O3 particles to the mechanical properties of the electrodeposited pure copper (Cu) and Cu-Y2O3 coatings. Energy-dispersive spectrum and elemental mapping confirm the codeposition of Y2O3 in the composite coating matrix, which indeed justifies the composite (Cu-Y2O3) coating. Both pure Cu and Cu-Y2O3 coatings have (101) preferred orientation; however, the volume fraction is found comparatively lower in composite coating. Both microstructural and textural characterization through electron backscattered diffraction technique show significant grain refinement in case of Cu-Y2O3 composite coating compared to pure Cu coating, and prominent 〈011〉 fiber texture is observed in case of pure Cu coating compared to composite coating. By the addition of second-phase Y2O3 in the matrix, the 〈011〉 fiber texture is disintegrated and concentrated at ϕ1 = 37°, ϕ = 45°, ϕ2 = 0°. Despite lower volume fraction of 〈011〉 fiber texture, better mechanical properties (hardness and wear resistance) of the composite coating compared to pure Cu coating can be attributed to finer grain size, higher misorientation angle and incorporation of second-phase Y2O3 particles.