Ti(Y)N and TiN coatings were deposited by the reactive ion plating method. Phase identification and examination of the texture of Ti(Y)N and TiN coatings were performed using x-ray diffraction analysis. The addition of yttrium causes a strong modification of the growth orientation of TiN crystallites in the coating. The distribution of yttrium across the interface of the Ti(Y)N coating and the substrate was analyzed by means of electron probe microanalysis. The rare-earth element Y was concentrated in the transition zone between the TiN coating and the substrate. The interfacial structure of the Ti(Y)N coating to the substrate was studied by transmission electron microscopy. The influence of the interface structure on the adhesion of the coating to the substrate is also discussed. The corrosion resistance and the wear resistance of the Ti(Y)N coatings were also studied. The results show that the Ti(Y)N coating exhibits an excellent corrosion resistance and high wear resistance that are improved compared to TiN by the presence of yttrium.