Abstract: A cutting tool is provided composed of a hard substrate having a PVD coating thereon having three layers. The innermost or first layer is composed of a group IVB (titanium, hafnium or zirconium) metal nitride. The middle or second layer is composed of a group IVB carbonitride. The outermost or third layer is also composed of a group IVB metal nitride. The PVD coating is characterized by high hardness and high residual compressive stresses.