In the present study, the effect of addition of potassium permanganate on the cladding microstructure obtained from the simultaneous synthesis of chromium from chromium oxide and molybdenum from molybdenum trioxide, were studied. For this purpose, a paste of blended powders containing chromium oxide, molybdenum trioxide, nickel, urea and aluminum with various amounts of potassium permanganate was applied on the surface of AISI 304 stainless steel substrates and welded using GTAW process. Cross section of the cladded samples have been investigated using optical microscopy and scanning electron microscopy (SEM) equipped with energy dispersive spectroscopy (EDS). The results revealed that the morphology of the claddings in the center of the weld is lathy ferritic in austenite matrix and in the interface of the substrate and cladding, the morphology was changed to skeletal ferritic. By increasing potassium permanganate in the cladding powders, the final microstructure of the cladding has been finer and the amount of ferrite in the weld metal has been increased. Furthermore, the results showed that the addition of potassium permanganate to the cladding powders would result in increasing the chromium content and subsequently decreasing the molybdenum content of the weld pool, without any significant changes in the manganese content of it.