Based on the characteristics of arc ion plating (AIP) technique, the microstructure and composition of synthesized compound coatings may be tailored by controlling the relevant processing parameters such as composition of target materials, substrate bias voltage, and nitrogen partial pressure and so on. In this study, the effect of substrate pulse bias and nitrogen partial pressure on droplet formation, chemical composition and phase constituent of (Ti,AI)N and (Ti,Al,Y)N coatings was studied. Furthermore, (Ti,AI)N and (Ti,Al,Y)N coatings were deposited on a wrought martensite steel 1Cr11Ni2W2MoV under optimum parameters, and thereafter oxidation resistance of the coatings was evaluated.