To address the challenge of fabricating metal-based composite coatings on the inner surfaces of tubular and internal hole components, a novel cylindrical electro-spark powder deposition (CEPD) technique is introduced. Utilizing the CEPD process, Ni-based composite coatings are successfully prepared on the inner surface of 316L stainless-steel tubes. The resultant Ni-based composite coatings completely covered the inner surface, exhibiting a splattered morphology and forming a robust metallurgical bond. Microstructural analysis revealed that the composite coatings primarily consisted of submicron-sized fine dendrites, with the main phases identified as Ni, FeNi₃, and Fe₃Ni₂, in addition to Ag particles. These fine grains and reinforcing phases contributed to a substantial increase in coating hardness, with an average value of 673.33 HV, representing approximately 2.82 times the hardness of the substrate. Tribological testing indicated that the high-hardness Ni-based composite coatings nearly doubled the surface wear resistance of the substrate and exhibited a significantly lower friction coefficient. Compared to other existing inner surface coating techniques, the CEPD process offers simplicity, low cost, and the ability to produce functional composite coatings with complex compositions. The prepared coatings exhibit considerable development potential and may offer a novel approach for the advancement of coating techniques for non-line-of-sight surfaces.