The work aims to improve the wear resistance of Fe-based alloy by adding AIN. Fe-based alloy coatings with AlN addition were produced by PTA-400E3-HB plasma transferred arc welding device on Q235 steel. The microstructure and phase composition were analyzed using optical microscope, scanning electron microscope (SEM) and X-ray diffractometer (XRD). The microhardness and wear resistance of the coatings were examined with microhardness tester and wear resistance tester. The results showed that the phases of α-Fe, γ-Fe and (Fe,Cr)7C3 existed in the coatings. Equiaxed microstructure was observed without AlN addition. The columnar dendrites appeared by adding AlN powder and which was coarser with the increase amount of AlN addition. The highest microhardness of (890.1±46.8)HV0.3 was the coating with 1% AlN, which was 131.6HV0.3 higher than that of Fe-based coating. The microhardness of the coatings decreased with the increase of AlN content because of the increase of untransformed austenite. The friction coefficients of the coatings all reduced after adding AlN and the friction coefficient was between 0.40 and 0.57. The smoothest worn surface was obtained when the AlN content was 3%, and the wear rate was 1.15×10-14 m3/(N?m). The wear mechanism changed from adhesive wear to abrasive wear after AlN addition. The results show that the friction and wear properties of the Fe-based coatings can be improved by adding AlN.