This study focuses on a comparative analysis of AlCrXN (X = Mo or V) coatings with the reference AlCrN coating via arc ion plating technique (AIP). The XRD and XPS results showed that the AlCrXN coatings were mainly composed of fcc-(Cr,Al)N solid solution phases. Both the AlCrMoN and AlCrVN coatings exhibited much higher hardness and adhesive strength than the AlCrN coating. The addition of Mo or V decreased the coefficient of friction (COF) and wear rate, which was due to the formation of lubricant oxides containing Mo or V on the coating surfaces. The cutting results showed that abrasive wear, adhesive wear, and oxidation wear were the main wear mechanisms for the coated tools at the cutting speeds of 60 m/min and 94 m/min. The addition of Mo or V dramatically improved the cutting performance of AlCrXN-coated tools by increasing the anti-wear ability due to the high hardness and the formed lubricant VOx or MoOx films.