Deployment of a suspension feedstock has been known to alleviate problems associated with using sub-micron and nanosized powder feedstock for thermal spraying of monolithic as well as powder-suspension ‘hybrid’ composite coatings. However, a powder-suspension hybrid feedstock has never been previously used in high-velocity air-fuel (HVAF) spraying. In this work, for the very first time, a chromium carbide (Cr3C2) suspension has been co-sprayed along with an Inconel-625 (IN-625) powder by the HVAF process as an illustrative case study. Two variants of the IN-625 + Cr3C2 hybrid coatings were produced by varying relative powder-suspension feed rates. For comparison, pure IN-625 coating was also deposited utilizing identical spray parameters. Detailed microstructural characterization, porosity content, hardness measurement and phase analysis of the as-deposited coatings was performed. The suspension-derived carbides were retained in the bulk of the coating, resulting in higher hardness. In the dry sliding wear test, the hybrid coatings demonstrated lower wear rate and higher coefficient of friction (CoF) compared to the conventional, powder-derived IN-625 coatings. Furthermore, the wear rate improved slightly with an increase in Cr3C2 content in the hybrid coating. Post-wear analysis of the worn coating, worn alumina ball and the wear debris was performed to understand the wear mechanisms and material transfer in the investigated coatings. In the potentiodynamic polarization test, higher corrosion resistance for hybrid coatings than conventional IN-625 coatings was achieved, indicating that the incorporation of a secondary, carbide phase in the IN-625 matrix did not compromise its corrosion performance. This work demonstrates a novel approach to incorporate any finely distributed second phase in HVAF sprayed coatings to enhance their performance when exposed to harsh environments.