Zirconia-alumina multilayer nanolaminate coatings were applied on stainless steel 316 substrates by a sol-gel dipping method. The coatings were characterised using X-ray diffraction, optical and scanning electron microscopy. The hardness and elastic modulus, the wear resistance and the oxidation resistance of the coatings were measured and assessed. It was observed that the coatings possessed fine grains, fine pores and high retention of tetragonal zirconia phase. The coatings exhibited high hardness and elastic modulus as well as good resistance to oxidation at high temperatures. However, these properties may be influenced by the interactions at the coating/substrate interface.