Vanadium carbide (VC) is a notable hard material that has yet to be thoroughly investigated as a coating solution for hydromachinery components, particularly to combat cavitation erosion. This study explores the deposition of VC, combined with a 75 wt.% binder of CuNi-Cr, onto SS316 steel through the High-Velocity Oxygen Fuel (HVOF) spraying technique. The cavitation erosion resistance of the VC-based coating was evaluated and compared to that of uncoated SS316 steel. Tests were performed under different impingement parameters, including variations in jet velocity (m/s) and stand-off distance (cm). The microstructure, microhardness, and surface roughness of the coatings were analyzed to establish a relationship with the erosion performance. Micrographs revealed a dense and well-formed microstructure in the HVOF-sprayed VC + 75C coating. The VC-based coating exhibited exceptional durability, showing a substantial reduction in cavitation erosion when compared to the uncoated SS316 steel, which can be attributed to the coating’s higher microhardness and its ability to absorb impact through a cushioning effect. Unlike the extensive, overlapping pits found on SS316 steel, the VC-based coating displayed isolated, smaller pits, further demonstrating its superior resistance to erosion.