It is well known that hard coatings can extend the lifetime of production tools in many industrial applications significantly . Higher cutting speeds, dry cutting or a better quality of machined surface can present the typical benefits of the protective surfaces so hard coatings receive a great interest from industrial and research organizations. Among the most important parameters of the coatings belong properties such as resistance to oxidation, thermal and abrasion, and good adhesion and tribological properties. The hard coatings based on (Tix,Al1-x)N prevails with unique properties belong to the most used coatings today. These coatings are deposited by PVD technology using either arc technologies or magnetron sputtering systems. New nanocomposite coatings (Ti,Al)N and (Ti0.4,Al0.6)N were tested in dry and wet cooling conditions and this paper deals with material analyses of the coating, testing of the cutting performance for a grooving technology in hardened low-alloyed steel.