As the wide application of stainless steel is increasing and cutting tool materials and coatings are developing in the world, the research and predictions in the fields of its wear and distribution are becoming more and more topical. Thus, research of processing parameters and factors influencing them is crucial. Stainless steel is steady, and it is a material that is difficult to process. It contains various alloy elements which increase its flexibility and hardness, and when turned make the processing very difficult, since the chip formation process is complicated. In modern automated mass or large series production, the chips obtained using current technology are not accepted. Thus, the research of the chip formation process is crucial. The influence of stainless steel (AISI420 and AISI 304) martensitic and austenitic structures were investigated and analyzed during the turning using the Duratomic nanocoated cutting tools. The Duratomic nanocoated cutting tools in comparison with the other known tools have larger wear resistance in the rough turning in complex with the bigger amount of the removed material. The better results were also achieved in exact processing with higher cutting speed and lower cutting, despite a significant increase in the cutting temperature. The use of Duratomic nanocoated cutting tools well coincides with the so-called clean manufacturing, which means, for example, not using a cutting fluid. For manufacturing such tools the wear-resistant multilayer nanocoatings are deposited by PVD Physical Vapour Deposition) on cemented carbide. Each layer has different composition/properties such as hardness, toughness, etc., and, as a result of such architecture, there are better functional properties in comparison with the wellknown coated cutting tolls with a single layer of the same thickness (2-12 µm). In this research, the Duratomic nanocoated cutting tools are examined during dry machining by variation of the machining parameters. The temperature field distribution in the cutting tool, and the chip formation process were examined as well. Since the wear resistance of the cutting tool has a great influence on the roughness of the machined surface, and chip formation process, the influence of the alloy elements was taken into account. The mathematical model of the cutting process is elaborated and analyzed. The better functional properties of the Duratomic nanocoated cutting tools with the appropriate inserts in comparison to other analog cutting inserts by different manufacturers are proven.