In　this　study,　we　propose　Fe–Mn-Cr/Ni　as　an　economical　drill　collar　overlay　material　applied　via　metal-cored　arc　welding　(MCAW).　A　series　of　Fe–Mn-Cr/Ni　overlay　alloys　with　different　Ni　contents　were　prepared　by　MCAW,　and　their　microstructure,　non-magnetic,　and　wear　properties　were　systematically　investigated.　The　results　show　that　the　addition　of　Ni　element　can　effectively　improve　the　austenitization　of　the　Fe–Mn-Cr/Ni　overlay　alloy　and　inhibit　the　formation　of　ferromagnetic　hexagonal　martensite　(ε)　and　body-centered　ferrite　(α),　thus　improving　the　non-magnetic　properties　of　the　Fe–Mn-Cr/Ni　overlay.　With　the　increase　of　Ni　addition　from　0.6　to　4.7　wt.%,　the　average　grain　size　gradually　increases　from　21.69　to　49.97 µm,　and　the　overlay　microstructure　gradually　evolves　from　columnar-like　ε-martensite　to　wide　ε-martensite　band　and　eventually　almost　austenite.　This　change　in　microstructure　as　Ni　content　increases　contributes　to　the　reduction　of　relative　permeability　from　2.225　to　1.057　due　to　the　increased　austenite　contents,　at　the　cost　of　increased　wear　rate　from　2.61　×　10−5　to　4.55　×　10−5　mm3·N−1·m−1　due　to　the　decay　of　wear-resistant　ε-martensite　skeleton.　By　controlling　the　Ni　content,　this　work　demonstrates　the　potential　of　preparing　Fe-based　austenitic　wear-resistant　layers　with　high　Mn　content　and　broadens　the　scope　of　austenitic　non-magnetic　deposited　alloys　for　surface　overlay　strengthening　or　repairing　of　Fe-based　non-magnetic　drilling　tools.　©　International　Institute　of　Welding　2024.