Surface alloys were made on mild steel, coated with nicker and chromium using laser surface alloying. Mild steel was coated with a composite layer of nickel and chromium using the plasma technique. This was followed by laser irradiation using a continuous carbon dioxide laser. Oxidation and corrosion behaviour of these alloys was then determined by carrying out oxidation in air at 800 degrees C and corrosion tests at room temperatures in 1 N H2SO4 With a 75 mu m layer of nickel and chromium each, it was possible to make surface alloys on mild steel, which had a chromium concentration of 6-7 wt%, but the nickel concentration varied from 10-20 wt%. Oxidation behaviour improved significantly over the as-coated specimen and aqueous corrosion improved considerably.