In this research paper, mechanical and tribological characterization of novel high wear-resistant ZrN-ZrAlN coatings are presented. The varying concentrations of AlN is chosen to evaluate the influence of AlN the surface morphological, nanomechanical, and tribological properties of the composite coating. The coatings were developed on D9 steel substrates using nitrogen reactive gas radio frequency (RF) magnetron sputtering of zirconium and aluminium targets in an argon plasma. Variable power density for the aluminium target and constant power density for zirconium, was used to obtain in a systematic way, the variable concentration of AlN in the coating. Surface morphological studies were carried out to evaluate composition and crystal structure using X-ray diffraction (GIXRD), Raman spectroscopy, and energy-dispersive X-ray spectroscopy (EDS). Coatings display a polycrystalline structure, but the level of crystallinity decreases with higher AlN concentration. Nanomechanical and nano scratch testing, along with tribological experimental studies were performed to comprehensively analyse performance of the developed coatings. Higher hardness of composite coating is achieved with optimal concentration of AlN in ZrN-ZrAlN coating. Adhesion strength of the coatings increased with the increase in the concentration of AlN. ZrN-ZrAlN coatings depicted low wear, however coatings containing AlN exhibits superior wear resistance.