In this work, three ceramic composite coatings Al2O3-3TiO2 C, Al2O3-13TiO2 C, and Al2O3-13TiO2 N were plasma sprayed on steel substrates. They were deposited with two conventional powders differing the volume fraction of TiO2 and nanostructured powder. The mechanical and tribological properties of the coatings were investigated and compared. The increase in TiO2 content from 3 wt.% to 13 wt.% in the conventional feedstock improved the mechanical properties and abrasion resistance of coatings. However, the size of the used powder grains had a much stronger influence on the properties of deposited coatings than the content of the titania phase. The Al2O3-13TiO2 coating obtained from nanostructured powder revealed significantly better properties than that plasma sprayed using conventional powder, i.e. 22% higher microhardness, 19% lower friction coefficient, and over twice as good abrasive wear resistance. In turn, the Al2O3-13TiO2 conventional coating showed an increase in microhardness and abrasive wear resistance, 36% and 43%, respectively, and 6% higher coefficient of friction compared to the Al2O3-3TiO2 conventional coating.