Additive Manufacturing (AM) has become increasingly common, and its use in various industries is increasing. However, the microstructure, friction and wear performance of metals made by AM, such as the inexpensive and relatively good-performing iron-chromium alloys, require further investigation. Generally, adding rare earth elements can effectively improve the performance of AM alloys, such as tensile strength, wear resistance, corrosion resistance, creep resistance, etc. This work aims to study the variation of microstructure, friction and wear properties of laser additive manufacturing processed iron-chromium alloys after adding different mass fractions of La2O3. The observations obtained by scanning electron microscopy showed that, with the addition of La2O3, the microstructure of AM alloy becomes more uniform and the grains are significantly refined. It is found by friction test that the running-in period is significantly shortened after the addition of La2O3. The coefficient of friction is reduced to a minimum of 0.68. Compared with AM alloys without La2O3, the wear rate of AM alloys with La2O3 is significantly reduced, with a maximum reduction of 38%. Using an optical microscope to observe the surface morphology of the wear scar, it is found that, after adding rare earth oxide, the wear mechanisms changed from adhesive wear and abrasive wear to abrasive wear, with the spalling of hard particles at the same time.