A study of microstructure and volumetric dilution of Cold Metal Transfer (CMT) clad of Nickel based super alloy, Inconel 617M on type 316L stainless steel (SS) substrate was carried out. Overlay coatings were deposited at three different current inputs (80, 90 and 100 A) to synergetic CMT welding set while the wire feed rate and pulse frequency were pre-programmed. The ability of CMT to produce very low dilution and low heat input with the minimal heat affected zone (HAZ), when compared to conventional Tungsten Inert Gas welding (TIG) process was successfully demonstrated. Detailed microstructural evaluation of the cross sections revealed porosity and crack free Inconel 617M overlay with complete fusion, making a metallurgical bonding at the interface. Transverse micro Vickers hardness evaluation from clad to substrate showed the absence of significant HAZ for overlay produced by CMT. Calculation of percentage volumetric dilution, based on elemental Energy Dispersive Spectroscopy (EDS) of Fe-K counts, revealed that the cladding deposited at 100 A current exhibited low dilution value of 6.3% at 100 μm away from the interface while clad produced by TIG show significantly higher dilution value of ~50% at 100 μm from interface. Electron Backscattered Diffraction (EBSD) studies revealed morphology similar to epitaxial growth, with same crystallographic orientation of grains across the interface for CMT overlaid coatings. © 2018 Elsevier B.V.