A newly developed martensitic stainless steel powder, called “powder A”, designed for surface coating with laser cladding and PTA cladding was characterized. The purpose with powder A is to achieve both good corrosion resistance and wear resistance in a stainless steel grade. The investigation of powder A was divided into cladding characterization, microstructural investigation and a property comparison to existing grades 316 HSi and 431 L. Powder A was successfully deposited with laser cladding, exhibiting a wide process window, and PTA cladding. In both cases no preheating was required and no cracks were formed. The microstructure examination indicates that powder A has a martensitic structure possibly containing small amounts of ferrite in the grain boundaries. Thermodynamic calculations in computer software Thermo-Calc 4.1 supported this theory. The microstructure of powder A proved to be very stable over a wide range of cladding parameters. Powder A was significantly harder than 316 HSi and 431 L and had better corrosion resistance than 431 L in a chloride environment. Powder A had similar corrosion properties as 316 HSi in the experiments made .The wear performance of the powder A coatings was similar to 431 L. This was surprising since the hardness of the powder A coatings is significantly higher compared to 431 L.