In machining, the tool life is one of the limiting criteria in the process; therefore, the development of wear-resistant material for the cutting tools is imperative. This paper presents a methodological approach to the design of nano-scale multilayered-composite coatings for cutting tools. A plasma-enhanced technology of filtered cathodic vacuum-arc deposition is used to coat the tools, which significantly extends the operational life of the cutting tools. Here, a three-layered architecture of coatings is proposed and each layer has a specific function. The engineered structural layers allowed for optimum combination of a high adhesion strength with the tool substrate and a minimum adhesion of the work material to the tool surface. The coating process is presented here alongside with the technological role of the layers. A study of the effect of the developed nano-scale multilayer composite coatings on the rates of tool wear was undertaken, and results were compared with the wear rates of uncoated and standard coatings. The results of a wide range experimental work are given in terms of flank wear and tool life for various machining conditions.