Process characteristics of the electrolytic codeposition of molybdenum disulfide particles with nickel from a Watts bath have been analysed in this study using statistical experimental design. The results show that temperature and concentration of suspended particles significantly affect the weight percentage of molybdenum disulfide in the deposit. Particle concentration has a positive effect, while temperature exerts an adverse effect. Moreover, pH and temperature have been observed to be significant factors affecting the nickel deposition efficiency. Both factors exert positive effects. A second order model, relating the current efficiency to pH and temperature, has been developed. This model adequately approximates the performance measures. The physical model proposed by Guglielmi has been shown to be valid from the present system at low current densities. The results at high current densities, however, show different features. It has also been observed that the presence of particles affects the nickel reduction reaction in an unknown way.