This paper reports the oxidation behavior of stainless steel type 403 as a substrate material with and without NiAl coating. Evaluation of oxidation resistance was performed on uncoated and coated specimens at 850 and 1050℃. A commercial diffusion process was used for the formation of NiAl intermetallic coatings on the specimens. Before aluminizing, a layer of nickel, about 40 μm, was deposited on specimens by electroplating. Various techniques including SEM, EDAX, optical microscopy and micro-hardness testing were employed to investigate the coatings before and after oxidation tests. Nickel-aluminides produced by two stage; plating-aluminizing, treatment with NiAl on the surface increased the performance of stainless steel samples significantly.