TaCr<sub>2</sub>-xNd<sub>2</sub>O<sub>3</sub> (x=0, 0.125, 0.25, 0.5 and 0.75at%) alloys have been prepared by mechanical alloying + hot pressing. The effects of Nd<sub>2</sub>O<sub>3</sub> on the microstructure and oxidation resistance of te TaCr<sub>2</sub> alloy have been investigated. The results show that Nd<sub>2</sub>O<sub>3</sub> mainly exists in Ta solid solution, and has no significant effect on the phase components and crystal form of the alloy. The alloys are composed of TaCr<sub>2</sub>, a small amount of Ta-rich phase and Cr solid solution. The addition of Nd<sub>2</sub>O<sub>3</sub> reduced the oxidation weight gain of TaCr<sub>2 </sub>alloy at 1200 °C; the oxide film showed a discontinuous multilayer distribution, and Nd<sub>2</sub>O<sub>3</sub> promoted the stratification of the oxide phase.