TiAlN coating has been deposited on HSS twist drill by the Physical vapor deposition (PVD) technology which combined with plasma enhance, multiple arc ion plating and unbalanced magnetron sputtering. Morphology, hardness, elastic modulus and adhesion strengths of the coating has been evaluated, respectively. In addition, dry drilling test has been carried out in 1Cr18Ni9Ti stainless steel. The investigation showed that TiAlN coating has a good mechanical property, the TiAlN coated HSS twist drill demonstrated over four times improvement in tool life.