PVD-coatings for cutting tools mean a substantial progress for tool lifetime and cutting conditions. Such tools, however, hold the risk of cost intensive sudden process breaks as a result of cohesive damage. This damage mechanism does not consist of a coating adhesion problem, but it can be traced back to the residual stress distribution in coating and substrate. This paper shows how residual stresses develop during the process chain for the manufacturing of PVD-coated carbide cutting tools. By means of different methods for residual stress determination it is shown that the distribution of residual stresses within the tool finally is responsible for the risk of cohesive tool damage.