One of the key ways to increase the efficiency of modern material cutting processes is to increase cutting speed; however, at the same time, temperature in the cutting zone also increases. In turn, various cutting fluids (CF) that have a negative impact on human health and the environment are traditionally used to remove heat. An increase in the cutting speed with simultaneous abandonment of CF is possible only with the use of alternative compensating technologies. One of these technologies is the modification of the surface layer of a cutting tool by applying special nanostructured composite coatings. These coatings, characterized by high heat resistance (up to 1100 °C), provide a favorable way to transform the cutting conditions by reducing the coefficient of friction (COF) and the adhesion with the material being machined. Due to their special nanostructure with nanolayer thickness of 2–20 nm, the considered coatings are also characterized by high hardness (up to 40 GPa), resistance to diffusion and oxidation, crack resistance, and resistance to brittle fracture. This chapter discusses methods for obtaining such coatings and examines their basic properties (COF at temperatures of 20–1100 °C, hardness, nature of cracking and destruction under various conditions, elemental and phase composition), as well as the cutting properties of tools with the above coatings in machining of structural and austenitic steels in various cutting conditions. This chapter also considers the challenges to choose the optimal composition and thickness of the above coatings, as well as the optimal thickness of their nanolayers.