The residual stresses in a NiCoCrAlY bond coat deposited on a Ni-base superalloy substrate after oxidation at 1150 °C were studied by X-ray diffraction using the sin2Ψ technique. The stresses were found to be tensile; they first increased and then decreased with oxidation time. High temperature stress measurement indicated that the stress developed and built up upon cooling, predominantly within the temperature range from 1150 °C to 600 °C. Microstructural examination suggested that, due to the limited penetration depth into the bond coat, the X-ray only probed the stress in a thin surface layer consisting of the single γ-phase formed through Al depletion during oxidation. Quantitative high temperature X-ray diffraction analysis revealed that, above 600 °C, the volume fraction of the β-phase in the bond coat increased with decreasing temperature. The mechanisms of stress generation in the bond coat were examined and are discussed based on the experiments designed to isolate the contribution of possible stress generation factors. It was found that the measured bond coat stresses were mainly induced by the volume change of the bond coat associated with the precipitation of the β-phase upon cooling.