A composition based on a novel MCrAlY formulation is provided for the production of protective coatings. The specific combination of the constituents of the MCrAlY formulation advantageously allows significantly high loadings of ceramic (metal oxide) while still retaining the ability to selectively oxidize aluminum to form alumina scale, a property previously not attainable with conventional MCrAlY materials when loaded with ceramics at levels of 15-45 weight percent. The alumina scale in combination with the modified MCrAlY formulation act as a barrier to specific detrimental oxide formations. The compositions of the present invention can act as protective coatings for a wide array of applications.
