It is expected that an Al-Cr-N composite nitride film may have a higher resistance to oxidation at elevated temperatures than the well-known Ti-Al-N films. The formation conditions of Al-Cr-N films by a dc reactive sputtering method and their properties were studied in this study. The films characterized with respect to their high temperature properties such as chemical composition, crystal structure, microhardness, wear and friction. The crystal structure of the Al-Cr-N films changed from hexagonal phase to cubic phase with an increase in Cr content in the films. The resistivity to thermal oxidation of the Al-Cr-N films is superior to that of usual Ti-Al-N films. A half of the friction coefficient in the Al-Cr-N film was obtained comparing with that in the ordinary Ti-Al-N film at room temperature and the wear rate of Al-Cr-N film was 2 order smaller than that of Ti-Al-N film. The Al-Cr-N films show a small friction coefficient at 500°C and then they are recognized to have good tribological characteristics.