Metallic Al was doped into amorphous carbon (a-C) to form a matrix of a-C(Al) of very low residual stress and high toughness at the expense of some hardness. Nanocrystallites of TiC (nc-TiC) of a few nanometers in size were embedded in this matrix to bring back the hardness. The nanocomposite coating of nc-TiC/a-C(Al) was deposited via cosputtering of graphite, Ti, and Al targets. Although the nanocomposite coating exhibited a moderately high hardness (about 20 GPa), it possessed extremely high toughness (about 55% of plasticity during indentation deformation) and low residual stress (less than 0.4 GPa), smooth (Ra = 5.5 nm), and hydrophobic surface (contact angle with water reaches 100 • ).