Al-TiC and Al-TiC-Y2O3 cladding layers were prepared on the AZ91D alloy by laser cladding technology. The effects of Al∶TiC mass ratio and Y2O3 addition on the microstructure, phase composition, hardness, and corrosion resistance of the cladding layer were studied. The results show that the Al-TiC cladding layer with different Al∶TiC mass ratio and the Al-TiC-Y2O3 composite cladding layer with different Y2O3 addition have achieved good metallurgical bonding with AZ91D alloy matrix; the main phases of Al-TiC cladding layer are Ti3AlC, TiC, Mg2Al3, and Al3Mg2. Al3Y and Al4MgY phases are newly produced in Al-TiC-Y2O3 cladding layer after adding Y2O3. When the mass ratio of Al: TiC is 8∶1, 4∶1, and 2∶1, the hardness of the corresponding Al∶TiC cladding layer is about 2.75, 3.24, and 3.94 times that of AZ91D alloy, while the hardness of Al-TiC-Y2O3 cladding layer is further improved after adding Y2O3. The corrosion resistance of Al∶TiC cladding layer with different Al∶TiC mass ratio is higher than that of AZ91D alloy, and the corrosion resistance of cladding layer is the best when the Al∶TiC mass ratio is 8∶1. On this basis, Al-TiC-Y2O3 composite cladding layer with Y2O3 is 0.6%, which has the highest hardness and the best corrosion resistance.