Ni-B/Y₂O₃ composite coatings were developed through an electrodeposition process to study the effect of addition of Y₂O₃ particles on structure, surface, thermal, mechanical, and anticorrosion properties of Ni-B coatings. It is revealed that parent crystal structure of Ni-B matrix is preserved by addition of Y₂O₃, however, a noticeable improvement in crystallinity is observed. The analysis of the surface exhibits formation of dense and nodular deposits in the two types of coatings, but incorporation of Y₂O₃ particles in Ni-B matrix has resulted in a noteworthy change in grain size and surface roughness. Thermal analysis of the surfaces indicates that Ni-B-Y₂O₃ composite coatings demonstrate superior thermal stability compared to Ni-B coatings. The nanoindentation analysis shows a significant enhancement in the mechanical characteristics of the Ni-B matrix by addition of Y₂O₃ particles. This may be contemplated as the result of grain refinement and dispersion hardening of the Ni-B matrix by the presence of hard Y₂O₃ particles. A decent improvement in the corrosion protection efficiency (73.6%) is also observed by addition of Y₂O₃ particles into Ni-B matrix. Simultaneous improvement of mechanical and anticorrosion properties suggests potential applications of Ni-B-Y₂O₃ coatings in oil and gas, automobile, and many other industries.