The effect of CeO2 modification on flame sprayed nickel-tungsten carbide (WC) coatings was investigated. The modified coatings exhibited smaller grain sizes of the ceramic phase due to enhanced dissolution of the WC phase. The rare earth doped coatings, especially Ni-WC +0.9% wt. CeO2, showed superior abrasive wear resistance with respect to the unmodified coating mainly due to enhanced hardness. Coating modified with 0.6% wt. CeO2 demonstrated superior erosion resistance at both impact angles, 30 deg and 90 deg, respectively, primarily due to low porosity levels. Microstructural examination showed different wear mechanisms in conventional and doped coatings.