Composite structure of magnesia partially stabilized Zirconia (MgO-PSZ) with a Ni-Al bond coat have been investigated.This composite was sprayed on to a stainless steel grid of stainless steel-304 substrate to produce coating layer. The measurements of microstructure surface roughness, porosity and microhardness for sprayed layers wereperformed. PulsedNd: glass laser with pulse duration of 300 µs. and an energy ranging between (1-7.6)jouleswas used to investigate the effect of heat treatment on the sprayed layer.The laser treatment causeda reduction in surface roughness and porosity.An improvement in the mechanical properties of the composites wasobserved.