Nickel-based coatings on aluminium with specific surface properties are of great interest for anti-corrosive, anti-wearing, and self-lubricating applications. In the present study electroless Ni-B alloy and Ni-B-CeO2 nanocomposite coatings were formed on 356 aluminium alloy surfaces. Ceria incorporation to Ni-B coating reduces the average nodular grain size from 1150 nm to 650 nm and Ni crystallite size from 15 nm to 9.97 nm. Ni-B-CeO2 nanocomposite shows remarkable improvement in microhardness of 684 VHN compared to pure Ni-B coating with 424 VHN. Enhanced wear resistance and reduction in friction coefficient are observed for the nanocomposite coatings compared to 356 Al alloy and Ni-B alloy coating. Potentiodynamic polarization measurements show a remarkable reduction in the corrosion current density for ceria added nanocomposite coating (2.48 × 10−6 A cm−2) than that of the particle-free counterpart (11.18 × 10−6 A cm−2). Uniform Ni-B-CeO2 composite coating was obtained on centrifugally cast A356 aluminium alloy cylinder liners which have potential applications in automotive systems.