This review outlines the development of electroless Ni-P composite coatings. It highlights the method of formation, mechanism of particle incorporation, factors influencing particle incorporation, effect of particle incorporation on the structure, hardness, friction, wear and abrasion resistance, corrosion resistance, high temperature oxidation resistance of electroless Ni-P composite coatings as well as their applications. The improvement in surface properties offered by such composite coatings will have a significant impact on numerous industrial applications and in the future they will secure a more prominent place in the surface engineering of metals and alloys.