Laser cladding was used on the surface of 18CrNiMo7 tool steel to produce Ni-based coating whose microstructure and mechanical properties were tested and analyzed. Results showed that there is no crack in the coating, and the microstructure is uniform with a lot of fine equiaxed dendrites and eutectic structures. After high-frequency quenching, the surface hardness of 18CrNiMo7 is up to 625 HV, which is higher than that of uniform coating, and the hardness of interlining coating is fluctuated. During wear process, plastic coating occurs on the surface of 18CrNiMo7 substrate, presenting adhesive wear characteristics. Under the action of pulse laser, the addition of WC particles to uniform coating makes finer microstructure that improves and the coating hardness and reduces adhesion wear rate. The WC particles in the Ni60A composite layer interact with the pulse laser to form a fine internal structure, presenting a dispersion distribution state, which improves the impact resistance of the Ni60A composite layer. Therefore, the wear resistance and impact resistance of the coating are enhanced. This study proves to be a reference for surface modification of other materials by wear and impact.