Abstract The paper deals with the evaluation of properties of the thin PVD layers applied on the tools made by powder metallurgy. This PVD technology belongs to the modern methods of depositing thin layers onto the surface of machine (tools and tool parts). Technological methods of the deposition process of thin layers are constantly improved. At present new types of layers are developed. The evaluation of structure, composition and properties of layers were controlled during whole coating process. TiAlN layer and nanocomposite layer used increase the life-time of cutting tools. So, there is important to analyse the coated material behaviour under the contact conditions. Thin AlTiN multilayer was deposited by ARC technology and nanocomposite layer nc-AlTiN/Si3N4 by LARC technology. The properties of the system thin layer - steel substrate were tested by roughness, hardness measuring and by pin-on-disc test at room and elevated temperatures. These properties were tested using Atomic force microscope (AFM), Vickers indenter, Calotest and Pin-on-disc tribometer. The HV0.5 hardness values were 21.5 ? 2.5 GPa for AlTiN multilayer and 23.9 ± 0.7 GPa for nACo layer. Values of coefficient of friction for nACo layer were lower those for AlTiN layer. Analysis of the employed coating systems indicates their possible applications on selected type of powder metallurgy steel tools and a possibility for an increase of the lifetime under working conditions.