This paper deals with the effect of coating layer on the fatigue strength of TiN coated 1Cr-1Mo-0.25V steel prepared by using the arc ion plating (AIP) process, in which it was characterized by the presence of extractor grid (ion filter). The rotary bending fatigue tests were carried out under room air conditions, and the fatigue crack initiation and growth bwhavior were observed by using plastic replica method. As experimental results, it was found that the obvious improvement of fatigue life at lower stress region was confirmed in TiN coated specimen processed with ion filter. It was also exlained that the increase of fatigue life in the case of an improved AIP process with ion filter was attributed to the retardation of crack initiation of the substrate surface due to hard coating layer, more densly formed with the reduced size and density of droplets.