Provided is a powder overlay nozzle that can increase the quality of an overlay layer formed on processing portion of a workpiece, and that can greatly increase workpiece productivity and maintainability. The powder overlay nozzle includes an inner nozzle member including a laser passage for passing laser beam, and an outer nozzle member externally fitted on the inner nozzle member. Between the inner nozzle member and the outer nozzle member, a discharge space for passing powder is formed. The outer nozzle member includes a supply channel for supplying the powder to the discharge space in a direction inclined with respect to an axis L of the powder overlay nozzle.