A coated article has a substrate and a coating scheme, which has a PVD coating region. The PVD coating region contains aluminum, yttrium, nitrogen and at least one element selected from the group of titanium, zirconium, hafnium, vanadium, niobium, tantalum, chromium, molybdenum, tungsten and silicon. The sum of the aluminum and yttrium contents is between about 3 atomic percent and about 55 atomic percent of the sum of aluminum, yttrium and the other elements. The yttrium content is between about 0.5 atomic percent and about 5 atomic percent of the sum of aluminum, yttrium and the other elements. There is also a method of making the coated article that includes steps of providing the substrate and depositing the above coating scheme with the PVD coating region.