Reactive cathodic arc evaporation of a Ti–B alloy with 3.5at.% boron was applied to deposit Ti–B–N coatings with a resulting boron content of 1at.%. The discharge behaviour was characterized. The coatings were investigated by depth-sensing indentation measurements before and after thermal loadings at 700°C under vacuum and under atmospheric conditions as well as by milling and drilling tests with coated tools. The results were compared to TiN and (Ti,Al)(C,N) reference systems. The Ti–B–N coatings showed an increased thermal stability in comparison to TiN and (Ti,Al)(C,N). In the application tests Ti–B–N-coated tools showed improved performance compared to the (Ti,Al)(C,N)-coated reference tools.