This study investigated the mechanical properties and performance of μ-AlTiN coating deposited by PVD cathodic arc technique for a specific Al0, 67Ti0, 33N composition deposited on a WC-Co and AISI D2 steel substrate. The structure of the coating was analysed using SEM, EDAX, XRD, AFM and TEM. Nano indentation measurements were used for analysing mechanical properties; the coating’s performance was evaluated during the milling of a titanium alloy (Ti6Al4V). The TiN film was initially deposited to improve adhesion between coating and substrate, where columnar grains ranging in size from 200 to 500 nm were observed having NaCl-type structure. μ-AlTiN grain growth was also columnar but had ~50 nm grain size. The μ-AlTiN coated tool life was compared to an uncoated tool to determine the coating’s influence during Ti6Al4V milling. The μ-AlTiN coating improved tool life by 100% compared to that of an uncoated tool due to aluminium oxide and TiC formation on the surface and a decrease in friction coefficient between the chip and the tool.