A new design philosophy was tried out on a carbide-reinforced tool for hot working of stainless steel. The carbide particle in the micro structure of the new tool was selected so as to meet the relatively large optimum size. Attention has been focused, in the conventional tool, on the enlargement of the area fraction of fine carbide particles on the surface. The tool was made by a plasma transferred arc process, and it was found in the laboratory that an optimum mixture ratio of NbC and AISI316L powder realizes the best performance against wear and galling. It was also found that coating of the new tool material on the mother metal of moderate strength, toughness, and ductility ensures the longevity of the tool. The new tool was subjected to hot rolling of a stainless-steel seamless tube by a plug mill to verify the high performance.