In this study, the Si and Al contents in a coating composition were improved, and a new TiAlSiN-coated tool was fabricated using high-power pulsed magnetron sputtering (HiPIMS). For comparison purposes, four types of coated tools, typically used in the market, were selected to mill 304 stainless steel in a minimum quantity lubrication environment. To evaluate the machining performance of the tools, the criteria of tool wear, workpiece surface roughness, and milling force were considered. The machining performance of the TiAlSiN-coated tools remained stable for all four working conditions, and it had the smallest compound milling force and tool wear in the experiment. The primary wear forms of the tools were coating peeling, oxidation wear, and adhesive wear. Under working conditions 1 and 2, due to the lower initial surface friction coefficient and thermal barrier effect, the workpiece surface roughness of the TiN-coated tools was the smallest, followed by that of the TiAlSiN. However, under inadequate working conditions, because of the good wear resistance of the TiAlSiN coating, it was not rapidly worn. This resulted in a lower average friction coefficient during processing and the workpiece surface exhibited the minimum surface roughness. A comparative analysis of the processing state of the five coatings under four groups of parameters indicated that the TiAlSiN coating had good processing stability, wear resistance, and a low surface friction value. The TiAlSiN-coated tools had better machining performance than the other four commercial-coated tools for 304 stainless steel machining, especially under working conditions 3 and 4.