Diamalloy 4010, which is iron/molybdenum blend, is resistive to wear and Diamalloy 2002 is resistive to corrosion and wear. However, combination of these powders in layered structure, may offer advantages over the individual powders. In this case, mechanical properties of the resulting layered structure could be improved. Consequently, investigation into mechanical and metallurgical properties of the resulting structure is necessary. High Velocity Oxy-Fuel coating of Diamalloy 2002 [(WC12Co)50,Ni33Cr9Fe3.5Si2B2C0.5] powders and Diamalloy 4010 [Fe68Mo30Cr1.8Mn0.2] powders as well as two-layered coatings consisting of these powders was carried out. In the two-layered structure, Diamalloy 4010 was sprayed at the substrate surface while Diamalloy 2002 was sprayed on the top of Diamalloy 4010 coating. The coating microstructure and morphology were examined using optical microscope, Scanning Electron Microscope (SEM) and Energy Dispersive Spectroscopy (EDS). The indentation tests were carried out to evaluate the microhardness and surface elastic modulus of the resulting coatings. The mechanical properties of the coatings were examined through tensile and three-point bending tests. It was found that the coating produced for Diamalloy 2002 resulted in higher hardness than that corresponding to Diamalloy 4010. The failure mechanism of coating during tensile and three-point bending tests was mainly crack formation and propagation in the coating. The elastic modulus of coating produced from Diamalloy 2002 was higher than that of Diamalloy 4010 coating, which was due to the presence of 12% WC in the coating. The irregularities observed in the elastic limit of the curves indicated the formation of cracks in the coatings, which was particularly true for two layered coating. The shear stress developed at interface of the two-layered coating was responsible for the crack initiation in the coating. The deep cracks were also formed in the coatings after the tensile tests. This was attributed to the local stress centers, which increased the stress intensity under the tensile load.