The nucleation and growth of diamond coatings on pure Ti substrate were investigated using microwave plasma assisted chemical vapor deposition (MW-PACVD) method. The effects of hydrogen plasma, plasma power, gas pressure and gas ratio of CH4 and H-2 on the microstructure and mechanical properties of the deposited diamond coatings were evaluated. Results indicated that the nucleation and growth of diamond crystals on Ti substrate could be separated into different stages: (1) surface etching by hydrogen plasma and the formation of hydride; (2) competition between the formation of carbide, diffusion of carbon atoms and diamond nucleation; (3) growth of diamond crystals and coatings on TiC layer. During the deposition of diamond coatings, hydrogen diffused into Ti substrate forming titanium hydride and led to a profound microstructure change and a severe loss in impact strength. Results also showed that pre-etching of titanium substrate with hydrogen plasma for a short time significantly increased the nuclei density of diamond crystals. Plasma power had a significant effect on the surface morphology and the mechanical properties of the deposited diamond coatings. The effects of gas pressure and gas ratio of CH4 and H-2 on the nucleation, growth and properties of diamond coatings were also studied. A higher ratio of CH4 during deposition increased the nuclei density of diamond crystals but resulted in a poor and cauliflower coating morphology. A lower ratio of CH4 in the gas mixture produced a high quality diamond crystals, however, the nuclei density and the growth rate decreased dramatically.