A coating system on a nickel-base superalloy substrate of a gas turbine engine component, the coating system comprising a ceramic layer on a beta-phase NiAlCr intermetallic overlay bond coal, the overlay bond coat consisting of nickel, aluminum, chromium, zirconium, and a dispersion of ceramic particles formed of at least one compound selected from the group consisting of oxides, nitrides, and carbides of chromium and zirconium, the ceramic particles being present in the overlay bond coat in an amount and size sufficient to be stable and unreactive at temperatures up to about 1300° C. and to increase the strength of the overlay bond coat by a dispersion strengthening mechanism.