Two steps CrAlFeSi coating has been fabricated on low carbon steel via mechanical alloying methods and its oxidation properties have been elucidated thoroughly. First, Al coating was deposited on the low carbon steel substrate via mechanical alloying for 1 h. Afterward, CrAlFeSi coating was deposited on Al coating using the same technique for 2 h. The effect of annealing at 650 °C on the oxidation behavior of two steps CrAlFeSi coatings was examined thoroughly. The microstructure of the coating layer before and after annealing was relatively similar. Microholes and microcracks were found in the coating layer of the substrate before and after annealing. Intermetallic phases were observed in the samples along with the major elements. The mass gain after cyclic oxidation at 800 °C in the air atmosphere for a substrate with two coating layers reduced by a factor of 10 compared to the substrate without coating layer, which is likely due to the formation of Al2O3 on the outer layer during the oxidation process. The thin layer of Al2O3 protects the inner layer from severe oxidation. Therefore, the two steps coating of CrAlFeSi on the low carbon steel can be used as an alternative method for reducing the oxidation at high temperature.