This article presents results on CrCuN nanocomposite coatings grown by physical vapor deposition. The immiscibility of Cr (containing a supersaturation of nitrogen) and Cu offers the potential of depositing a predominantly metallic (and therefore tough) nanocomposite, composed of small Cr(N) metallic and/or β-Cr2N ceramic grains interdispersed in a (minority) Cu matrix. A range of CrCuN compositions have been deposited using a hot-filament enhanced unbalanced magnetron sputtering system. The stoichiometry and nanostructure have been studied by x-ray photoclectron spectroscopy, transmission electron microscopy, scanning electron microscopy, and x-ray diffraction. Hardness, wear resistance, and impact resistance have been determined by nanoindentation, reciprocating-sliding, and ball-on-plate high-cycle impact. Evolution of the nanostructure as a function of composition and correlations of the nanostructure and mechanical properties of the CrCuN coatings are discussed. A nanostructure comprised of 1-3 nm α-Cr(N) and β-Cr2N grains separated by intergranular regions of Cu gives rise to a coating with significantly enhanced resistance to impact wear. © 2005 American Vacuum Society.