Cutting tool plays an important criterion for the overall performance of machining to achieve better tool-life, superior surface finish along with immense productivity. The evolution of cutting temperature along with increased cutting parameters accelerates the plastic deformation of insert tip, cutting edge breakage and thus affects the surface quality. Built-up-edge (BUE) formation also enhances rapid tool wear, fluctuations of cutting forces, and vibration. Therefore in modern manufacturing to enhance productivity considering good surface quality, there is striving for innovation and research in the area of novel cutting tool materials. Hard machining emerges as a newer process alternative to traditional grinding performance where popular cutting tool materials used as CBN (Cubic Boron Nitride), ceramics, and coated carbides etc. The benefits of hard machining serve as reduction of the manufacturing cycle, cost, and environmental friendly. Thermal softening and reduction of shear stress due to the rise of cutting temperature enable hard machining easier under dry environment compared to flood cooling. However, tool wear and surface roughness deteriorates and thus reduces tool life due to frequent failure of cutting edge. Thus in the current review, the performance of cutting tool materials during machining hardened steels is focused. Moreover, a proper selection of cooling and lubrication strategy can prolong the tool life and surface finish. Different hard thin layer coatings on carbide tools enhance the machining performance due to thermal barrier, abrasion, and diffusion resistance properties. Due to techno-economical feasibility, coated carbide cutting tools are extensively used during hard machining in recent years which has been developed by CVD/PVD method.