Deposition of a coating on rough surfaces faces unique challenges due to the complexity of substrate morphology. In the present research, electroless deposition of a Ni-P coating was successfully deposited on diamond particles. Microtomography was conducted to study the deposition mechanisms. It revealed that the coating coverage rate on diamond particles was affected by the synergistic action of the deposition time, substrate morphology, and hypophosphite concentration. The best coverage was achieved in a solution with 0.2 mol/L hypophosphite. Two major morphological features of the coating: nodular and smooth, were influenced by the deposition parameters, coating integrity, and substrate morphology. The failure was seen in fractured and peeled off coatings. It was due to residual stress produced by the coalescing of crystallites during the deposition. This failure mechanism explains the tendency of coating fracture at three morphological features of the substrate. This work is beneficial to semiconductor manufacturing where effective cutting in chip fabrication is essential.