In order to obtain wear and corrosion resistant Fe-based alloy coating, laser cladding of D577 alloy powder on 45# steel is conducted using CO2 laser. The microstructure, hardness, friction and wear performance are investigated by scanning electron microscopy (SEM), energy dispersive spectroscopy (EDS), X-ray diffractometer (XRD), micro-hardness meter, and reciprocating wear test machine. The experimental results show that the coating consists of γ-Fe single phase, there is a good metallurgical bond between coating and substrate, and the coating is free of crack and pore defect. The micro-hardness of the coating is 630~650 HV. The nano-hardness and elastic modulus of the coating are 8.58 GPa and 235.82 GPa, respectively. D577 alloy laser cladding coating can effectively improve the wear resistance and electrochemical corrosion performance of 45# steel substrate.