In recent years, rare earth element doping has become an important emerging way to improve material properties. In this study, the effects of rare earth Y doping on the morphology, microstructure and properties of Hf-Y-N composite coatings were analyzed by combining equipment characterization methods and simulation methods. The results showed that when the content of Y was 9.8 at.%–18.5 at.%, (Hf, Y) N substituted solid solution was formed by Y atoms replacing Hf atoms. And as the Y content increased, the lattice distortion of coatings increased and the grain size decreased. The maximum hardness of the coating was 34.6 GPa when the doping amount of Y was 18.5 at.% and the hardness values of the Hf-Y-N composite coatings were greater than those of the binary HfN coatings. The fracture toughness of the composite coatings increased with the increase of Y doping content. The maximum fracture toughness was 4.8 MPa. m1/2, which was nearly five times higher than the fracture toughness of binary HfN coatings. The solid solution strengthening and fine grain strengthening effects caused by the doping of Y were responsible for that. At the same time, the adhesion between the coatings and the substrate was significantly improved. In addition, the doping of Y improved the thermal stability and corrosion resistance of the coating, and the corrosion current density of Hf-Y-N coating increased by two orders of magnitude compared to substrate, with a minimum of 4.21 × 10−8 A ∙ cm−2.