Hot work die steel possesses better elevated temperature properties that are desired for hot working application. In the present work, the life of forging die steel (DIN 1.2714) was extended by surface overlay coating using metal inert gas welding, which decreases die wear. This study compares two distinct iron-based overlay coating compositions applied to forging dies and samples, followed by tempering and exposure to varying cooling rates. The microstructure of the coated samples was analyzed through optical and scanning electron microscopy. These different coatings, along with the varied cooling rates, were assessed to identify conditions that reduce defects and improve the longevity of the forging die. The forging die’s lifespan was observed to increase by 44%, which can be attributed to the selection of suitable alloying elements for the overlay coating and the optimization of the cooling rate.