AbstractTungsten carbide particles reinforced metal matrix composite (MMC) coatings can significantly improve surface wear resistance owing to their increased surface hardness. However, the presence of macro‐ and micro‐residual stresses in MMC coatings can have detrimental effects, such as reducing service life. In this study, neutron diffraction was used to determine the residual stresses in spherical fused tungsten carbide (sFTC) reinforced Cu matrix composite surface deposits after laser melt injection. We also developed a thermo‐mechanical coupled finite element model to predict residual stresses. Our findings reveal that sFTC/Cu composite deposits produced with a preheating temperature of 400°C have low residual stresses, with a maximum tensile residual stress of 98 MPa in the Cu matrix on the top surface. In contrast, the sFTC/bronze (CuAl10Ni5Fe4) composite deposit exhibits very high residual stresses, with a maximum tensile residual stress in the Cu matrix on the top surface reaching 651 MPa. These results provide a better understanding of the magnitudes and distributions of residual stresses in sFTC‐reinforced Cu matrix composite surface deposits manufactured via laser melt injection.