In recent years, the increasing energy costs have lead to power utility industries to seek/develop high efficiency systems of production and of energy utilization. In addition, environmental concerns regarding greenhouse gas emissions are playing a major role in the development of clean energy systems. The development of metallic materials that can withstand elevated temperatures is among the viable alternatives to increase energy efficiency. Nevertheless, for this to happen, the corrosion and oxidation resistance of Fe- and Ni-based alloys needs to be significantly improved. Among the possible ways to enhance the life of high temperature alloys is the application of protective ceramic coatings. Conventional coatings are expensive and the protective effects controversial at times. An alternative which offers a great potential is the application of nano-ceramic coatings. Hence, in this work nanocrystalline coatings based on nano-CeO2 are applied to an austenitic stainless steel 304L and then exposed to elevated temperatures. Weight changes are monitored as a function of time and the results are compared with uncoated alloys tested under similar conditions. In addition, computer simulations of possible rate limiting diffusion mechanisms are carried out. It is found that the nanocoatings provided remarkable high-temperature oxidation resistance and improved scale adhesion. In particular, it is found that the smaller the nanoparticles are, the more effective the nanocoatings in providing oxidation resistance.