Magnetron sputtering of thin films is a strongly developing field of PVD technologies. This paper reviews the recent progress in sputtering of films with controlled texture and grain size using the ion bombardment of growing films and/or the mixing process, i.e. an incorporation of one or several additional elements into a base material. Special attention is devoted to the formation and properties of nanocomposite coatings with grains smaller than 100 nm. New physical properties of these materials, not attainable in polycrystalline films with grains greater than 100 nm, are outlined. The concept of attaining a new generation of hard nanocomposite coatings with high toughness is also described.