Line a baking sheet with parchment paper.
Using a double boiler method, melt the candy coating. This way the candy coating will stay warm and melted while dipping all the marshmallows.
Dip the top of the marshmallow with the melted candy coating. Be sure to coat only the top half of the marshmallow.
Place the marshmallow onto the parchment paper. Spoon the sprinkles on top of the candy coating. Let dry for 20 minutes or until hardened. Store in an airtight container.