Today's cutting tool research activities are concentrated on improving the properties of tools by optimizing manufacturing technologies and tool geometries, by alloying special cutting materials, and by coating tools. During dry drilling of tempered steel the wear mechanisms of (Ti 1−x Al x )N coated WC carbide tools were investigated. Effects of coating composition, sputter technologies (magnetron sputter ion plating and high ion sputtering), and substrate machining on cutting performance were examined. Topics considered include influences of surface properties of wc carbides on film adhesion and effects on wear behaviour. Residual stress measurements and SEM images were used for characterization of surface properties. Film adhesion was analysed by scratch and indentation tests. Because of increasing interfacial strength of microblasted tools, superior wear behaviour in dry machining was observed. The best wear resistance during dry drilling of tempered steel was found for (Ti,Al)N compositions of high microhardness (Al/Ti ratio of about 1).