Nano- and submicro-scaled ZrO2 particles were codeposited into Ni matrix by an electrochemical plating process using a Watts bath. The incorporation has been studied in relation to dispersion stability. The ZrO2 particles were characterized through zeta potential electro-acoustic measurements and particle size distribution. SEM and EDX analysis of the codeposited layers were performed to characterise the coating morphology and to determine the particle concentration in the layer. A content up to 10 vol. % of ZrO2 was found in Ni matrix. As electrostatic repulsion within the dispersion increases, particle agglomeration slows down and the concentration of non-agglomerated particles rises resulting in an enhanced amount of particles incorporated in the electroplated Ni layers. The effect of electrophoresis and diffusion on particle transport to the cathode is discussed.