Pure and MgO incorporated Ta coatings were prepared on Cp-Ti substrate using laser engineered net shaping (LENS), which resulted in diffuse coating-substrate interface. MgO was found along the Ta grain boundaries in the Ta matrix that increased the coating hardness from 185 ± 2.7 HV to 794 ± 93 HV. In vitro biocompatibility study showed excellent early cellular attachment and later stage proliferation in MgO incorporated coatings. The results indicated that although Ta coatings had higher biocompatibility than Ti, it could further be improved by incorporating MgO in the coating, while simultaneously improving the mechanical properties.