Arc-evaporated AITiN coatings with remarkable adhesion and thermal stability are widely used in manufacturing. However, the large residual stress and surface roughness limit their high-level applications for advanced machining. In this study, a hybrid technique combining cathodic arc evaporation and magnetron sputtering was utilized to enhance the mechanical properties and wear resistance of AlxTi1-xN with x = similar to 0.65. The hybrid AIM coatings exhibited a nano-multilayer architecture with alternating arc-evaporated and magnetron sputtered constituents, which decreased their residual stress from -7.1 GPa to about -5.0 GPa. In addition, the hybrid AlTiN showed higher indentation toughness than the monolithic coatings. The hybrid AITiN coating with a target sputtering power of 7.0 kW showed excellent wear resistance at room and high temperature. At 800 degrees C, the hybrid coatings mainly showed abrasive and oxidation wear, while the monolithic AITiN coating showed abrasive/oxidation wear and brittle failure.