TiYN coated high speed steel tools have been developed and their tool lifes were assessed. First yttrium alloyed titanium target was manufactured, then using the arc ion plating(AIP) technique TiYN coating was deposited onto high speed steel substrate. Three kinds of varying thickness of TiYN coated tools were prepared. Cutting tests were carried out with theses tools and for comparison with the commercially available uncoated, TiN, TiCN and TiAlN coated tools. During the cutting tests flank wear width vs. cutting time was measured. It has been revealed that the newly developed TiYN coated tools show superior tool life characteristics to others.