Abstract. The paper considers the concept of a multi-layer architecture of the coating in which each layer has a predetermined functionality. Latest generation of coatings with multi-layered architecture for cutting tools secure a dual nature of the coating, in which coatings should not only improve the mechanical and physical characteristics of the cutting tool material, but also reduce the thermo-mechanical effect on the cutting tool determining wear intensity. Here are presented the results of the development of combined methods of forming multi-layer coatings with improved properties. Combined method of forming coatings using a pulsed laser allowed reducing excessively high levels of compressive residual stress and increasing micro hardness of the multilayered coatings. The results in testing coated HSS tools showed that the use of additional pulse of laser processing increases tool life up to 3 times. Using filtered cathodic vacuum arc deposition for the generation of multilayer coatings based on TiAlN compound has increased the wear-resistance of carbide tools by 2 fold compared with tool life of cutting tool with commercial TiN coatings. The aim of this study was to develop an innovative methodological approach to the deposition of multilayer coatings for cutting tools with functional architectural selection, properties and parameters of the coating based on sound knowledge of coating failure in machining process.