Applying negative bias voltages caused significant microstructure changes in arc ion plated CrN films. Nanocrystalline microstructures were obtained by adjusting the negative bias voltage. Structural characterizations of the films were carried out using X-ray diffractometry (XRD) and high-resolution transmission electron microscopy (HR-TEM). The results indicated that increasing ion bombardment by applying negative bias voltages resulted in the formation of defects in the CrN films, inducing microstructure evolution from micro-columnar to nanocrystalline. The microhardness and residual stresses of the films were also affected. Based on the experimental results, the evolution mechanisms of the film microstructure and properties were discussed by considering ion bombardment eftects.