We introduce a novel syntheses approach to achieve ultrafine oxide and nitride inclusions uniformly dispersed in metal matrices. This method is utilising atmospheric reactions for particle formation during liquid metal deposition (LMD) followed by thermo-mechanical processing. The approach is demonstrated on stainless steel Fe-19Cr-11Ni-2.5Mo (316L), which was continuously deposited by arc welding of wires and laser-based additive manufacturing of powders, both under oxygen and nitrogen containing atmospheres. After hot rolling of the porous deposited materials, we thus obtained oxide dispersion strengthened (ODS) metallic materials with more than 2 vol.% of nanometric and fine dispersed oxide / nitride compounds. Enhanced tensile strength and strain could be obtained compared to a reference alloy without inclusions, even at elevated temperatures. This novel concept approach sets the foundation for a new innovative, time- and cost-effective continuous production technique of metallic materials with homogenously dispersed oxide / nitride compounds, contrary to commonly used powder metallurgy routes. Comparisons of microstructural changes and physical properties are outlined. Furthermore strategies for future alloy design, transfer of principle, tuning of atmospheric reactions, potential automation and upscaling of production are discussed.