Ag-SnO2 coating on copper substrate has been prepared by atmospheric plasma spraying method using the energy ball milled Ag-12wt.%SnO2 composite powders as the raw materials. The microstructures of Ag-SnO2 coating were characterized using XRD and SEM, respectively. The mechanical properties and arc erosion performance of as sprayed coating have been determined by tensile test, microhardness and arc erosion test, respectively. The results show that Ag-SnO2 coating presented the compact microstructure, and the nanosized SnO2 particles are uniformly dispersed in the Ag matrix of coating. The mechanical properties and arc erosion performance of Ag-SnO2 coating are close to that of bulk alloy. After arcing test, the surface of coating presents the dispersion of cathode spots and a little erosion, indicating that Ag-SnO2 coating has excellent arc-erosion resistance. Plasma spray technique is an effective approach to manufacture Ag-SnO2 contact coating with good mechanical properties and arc erosion resistance performance.