High-velocity air fuel (HVAF) spraying is a versatile and cost-effective platform to fabricate wear resistant coatings. In this work, deposition of Nickel–Phosphorus cladded diamond feedstock is explored as a greener alternative to realize highly wear resistant large-area coatings. To the best of authors knowledge. this is the first study that has utilized HVAF technique for developing wear resistant Ni–P coatings reinforced with diamond (NCD). This work also aims to understand the effect of particle size by using coarse (20–30 μm) and fine NCD (10–15 μm) particles as feedstock. The importance of utilizing appropriate processing conditions was also highlighted by using two different nozzle configurations, for which the two powder particle sizes exhibited considerable differences in terms of microstructure, phase characteristics and mechanical properties. Further, the effect of annealing on the above coating characteristics was also examined, and it is shown that optimal spraying conditions can preclude the need for post-treatment. Furthermore, the as-deposited and annealed coatings were subjected to sliding wear tests to assess their tribological performance. Post-wear analysis performed on worn surfaces revealed the associated wear mechanisms. The results ensuing from this work lay the foundation for realizing new generation of HVAF sprayed wear resistant Ni–P/diamond composite coatings for diverse applications.