Laser cladding with coaxial powder feeding is one of the new processes applied to produce well bonding coating on the component to improve performance of its surface. In the process, the clad material is transported by the carrying gas through the coaxial nozzle, generating gas-powder flow. The powder feeding process in the coaxial laser cladding has important influence on the clad qualities. A 3D numerical model was developed to study the powder stream structure of a coaxial feeding nozzle. The predicted powder stream structure was well agreed with the experimental one. The validated model was used to explore the collision behavior of particles in the coaxial nozzle, as well as powder concentration distribution. It was found that the particle diameter and restitution coefficient greatly affect the velocity vector at outlet of nozzle due to the collisions, as well as the powder stream convergence characteristics below the nozzle. The results indicated a practical approach to optimize the powder stream for the coaxial laser cladding.