The electrolytic reduction of spent oxide fuel involves the liberation of oxygen in a molten LiCl electrolyte, which results in a chemically aggressive environment that is very corrosive fir typical structural materials. So, it is essential to choose the optimum material f3r the process equipment handling molten salt. In this study, the corrosion behavior of Al-Y coated Haynes 263 in a molten salt of $LiCl-Li_2O$ under oxidation atmosphere was investigated at $650^{circ}C$ for $72~168$ hours. The corrosion rate of Al-Y coated Haynes 263 was low while that of bare Haynes 263 was high in a molten salt of $LiCl-Li_2O$. Al-Y coated Haynes 263 improved the corrosion resistance better than bare Haynes 263 alloy. An Al oxide layer acts as a protective film which Prohibits Penetration of oxygen. Corrosion Products were formed $Li(Ni,Co)O_2$ and $LiTiO_2$ on bare Haynes 263, but $LiAlO_2,;Li_5Fe_5O_8;and;LiTiO_2$ on Al-Y coated Haynes 263.