-The paper studies the challenges of improvement of reliability and tool life of ceramic cutting tools made of mixed ceramic Al2O3-TiC through application of nanoscale multilayer composite coatings, deposited through the method of filtered vacuum arc deposition. The paper studied wear mechanisms of ceramic cutting tools with and without coatings, as well as reliability of ceramic tools. It is found out that coatings reduce the wear rate of a ceramic tool along its flank face. The difference between flank wear land VB for an uncoated ceramic tool and a ceramic tool with coating reaches up to 60 µm during cutting time of 10-12 min, with the better results on reduction of the wear rate of flank wear land shown by ceramic cutting inserts with nanoscale multilayer coating Ti-(TiAl)N-(TiCrAl)N as compared with coating Ti-(TiAl)N-(ZrNbTiAl)N. The tests showed that failures of uncoated ceramic tools follow the exponential distribution law, and the coefficient of failure variation of such tool is 1.08. Meanwhile, the failures of coated ceramic tools follow the law of Weibull distribution, and the coefficients of failure variation are 0.39-0.45, respectively. Thus, it is found out that the deposition of multilayer composite coatings of recommended composition on working surfaces of a tool equipped with cutting inserts of mixed ceramic Al2O3-TiC provides the increased operating reliability of the ceramic tool and predicts its failures.