Electroless nickel composite coatings possess excellent mechanical and tribological properties such as, hardness, wear and corrosion resistance. Composite coatings can easily be coated not only on electrically conductive materials but also on non-conductive materials like as fabrics, plastics, rubber, etc. This review emphasizes on the development of electroless nickel composite coatings by incorporating different types of hard/soft particles (micro/nano size) in the electroless Ni-P matrix to improve the mechanical and tribological properties of the coatings. The preparation of electroless bath for nickel-phosphorus composite coating, methods to incorporate hard and/or soft particles in the bath, factors affecting the particle incorporation in the coating and its effect on coating structure, hardness, wear resistance, friction behavior, corrosion resistance, and mechanical properties are discussed thoroughly.