To study the effect of ZrO2 on the corrosion and wear behaviour of NiTi adaptive coatings, AISI 316 stainless steel samples were laser coated with NiTi-ZrO2 admixed powders. The corrosion behaviour of the composite coatings was studied in 1M H2SO4 using polarisation methods. Both dry and wet wear tests were conducted on composite coatings at different sliding loads using pin-on-disc tribometer setup. The corrosion resistance of the laser coatings depended strongly on the chemical composition and microstructure. The results showed an increase in the corrosion rate, as ZrO2 content increased. Dry wear rate improved, whilst wet wear rate decreased with increased ZrO2 content.