A brief introduction to the subject of Thin Film Coatings and their application to gear hobs and shaper cutters is followed by a detailed description of the Chemical Vapor Deposition Process and the Physical Vapor Deposition Process. Advantages and disadvantages of each of these processes is discussed. Emphasis is placed upon: application engineering of coated gear tools based on laboratory and field test results. Recommendations are suggested for tool design improvements and optimization of gear cutting operations using coated tools. Productivity improvements potentially available by properly utilizing coated tools are considered in terms of both tool cost and machining cost.