A nanolayered coated cutting tool that includes a substrate that has a surface with a coating on the surface thereof. The coating comprises a plurality of coating sets of alternating nanolayers of titanium nitride and titanium aluminum nitride wherein each coating set has a thickness up to about 100 nanometers. The coating includes a bonding region and an outer region. The bonding region comprises a plurality of the coating sets wherein the thickness of each coating set increases as the set moves away from the surface of the substrate. The outer region comprises a plurality of the coating sets wherein the thickness of each coating set is about equal.