H13 tool steel with excellent hot working properties is commonly used for manufacturing dies. However, the damage of die surface due to cyclic thermo-mechanical loading is detrimental to the service life. In order to enhance the die life, it has been observed that cladding based repair is superior to welding or thermal spraying repair techniques. In this paper, experimental study of laser cladding of H13 has been carried out. CPM 9V steel powder has been deposited on H13 tool steel plate for repairing the die surface damage using a CW CO2 laser in conjunction with powder injection system. The effect of laser parameters on clad geometry and clad quality has been investigated. The microstructure of laser cladded samples has been characterized using optical microscope (OM) and scanning electron microscope (SEM). The phases and the residual stresses present in the clad have been determined via X-ray diffraction. The microhardness profiles obtained in the clad–substrate system and the hardness change due to cyclic thermal loading have also been characterized. Optical micrographs of the clad microstructure shows existence of vanadium carbide particles embedded in martensite and retained austenite. The hard vanadium carbide particles increase the clad hardness to an average of four times greater than the substrate hardness. It has been observed that compressive residual stresses are generated in clad which is desirable for repair applications as it will impede the crack propagation resulting in enhanced die life.