Abstract. The aim of this work was to investigate mechanical and cutting properties, as well as the nature of wear and failure of carbide cutting tools with modifying coatings of two types: nanostructured multi-layered coating Zr-ZrN-(ZrCrAl)N, applied through the use of the technology of filtered cathodic vacuum arc deposition, and multi-layered nano-structured and gradient coating Ti-(TiAl)N-(TiAl)N, applied through the use of the technology of LARC ® (Lateral Rotating Cathodes). It is found out that the both types of coatings under test significantly improve tool life of a carbide cutting tool. The studies of mechanisms of wear and failure of carbide tools with coatings under test, conducted at macro and micro levels, have identified their major differences and revealed their most preferable field of application. The carbide tools, equipped with cutting inserts with the nano-structured multi-layered coating under study, provided a significant increase in cutting properties (tool life) of the tool in comparison with the uncoated carbide tool and in comparison with the reference carbide tool with TiN coating. The tool with the coating Ti-(TiAl)N-(TiAl)N under study demonstrated the increased wear resistance during 30-35 min of cutting, and then, the process of coating failure and tool wear was sharply intensified. For the tool with coating Zr-ZrN-(ZrCrAl)N, the tests revealed more evenly-balanced wear during the whole operating time between failures. It should be noted that NMCC Zr-ZrN-(ZrCrAl)N are substantially thinner, and that fact predetermines their better resistance to failure because of crack formation, and the technology of its generation is more cost-effective.