Nickel aluminide coating with improved oxide stability

In one embodiment of the invention, a NiAl overlay bond coating composition comprises a NiAl alloy. The alloy comprises Zr and at least one modifying element in an amount effective to form a stabilized oxide structure comprising stabilized zirconia including a substantially tetragonal structure upon oxidation of the alloy. The tetragonal structure is stabilized such that it does not change phases and revert to a monoclinic or monoclinic and tetragonal structure, which is not substantially tetragonal, upon thermal cycling.