Machine components and tools subjected to aggressive environments and strong wear conditions need surfaces with good mechanical properties. The thermo-reactive deposition/diffusion (TRD) process is one of the methods used for improving the mechanical properties of these components and tools, mainly because of its low cost and good performance of the coatings deposited. Although the TRD process is widely used for coating dies, extrusion tools and punches among others, the in-service performance of cutting tools coated using the TRD process has not been extensively studied. In this study, niobium carbide coatings were deposited on cutting punches and screw taps using the TRD technique. Phase formation and micro-hardness of the coatings were studied using X-ray diffraction and Vickers measurements respectively, and the in-service performance of the coated and uncoated tools was studied through field tests conducted at different numbers of cuts. The results show that the coating significantly improves the wear resistance and the cutting performance of the tools, especially at higher numbers of cuts.