Cr-based nitride hard coatings were produced by multi-magnetron sputtering sources using elemental metal materials. Cr, Ti, Mo, V, Al, and Y target materials were used for the metal sources whilst nitrogen was introduced at the same time to produce multilayer nitride hard coatings. The deposition process was optimised according to the properties of hardness, adherence and wear measured using microhardness, scratch, Rockwell indentation and pin-on-disc tests. The coatings were deposited onto hard metal carbide as well as high speed steel cutting tools such as inserts and drills. The coated inserts were tested on a wide range of difficult to machine materials using a Boehringer VDF180-C CNC lathe. The machining was performed under interrupted cutting conditions and the results were compared with those obtained using an advanced commercially available TiA1N coating. The coated carbide drills were tested under dry conditions to cut hard alloy steel and the coated tool steel drills were tested under lubricant conditions to cut carbon steel with comparing the similar tests on commercial TiN coatings. These test results were compared with those from drills coated with a commercial TiN.