Hard and wear-resistant coatings created utilizing physical vapor deposition (PVD) techniques are extensively used in extreme tribological applications. The friction and wear behavior of coatings vary significantly with temperature, indicating that advanced coating concepts are essential for prolonged load-bearing applications. Many coating concepts have recently been explored in this area, including multicomponent, multilayer, gradient coatings; high entropy alloy (HEA) nitride; and functionally modified coatings. In this review, we highlighted the most significant findings from ongoing research to comprehend crucial coating properties and design aspects. To obtain enhanced tribological properties, the microstructure, composition, residual stress, hardness, and HT oxidation resistance are tuned through doping or addition of appropriate materials at an optimized level into the primary coatings. Such improvements are achieved by optimizing PVD process parameters such as input power, partial pressure, reactive gas flow rates, substrate bias, and temperature. The incorporation of ideal amounts of Si, Cr, Mo, W, Ag, and Cu into ternary and quaternary coatings, as well as unique multilayer designs, considerably increases the tribological performance of the coatings. Recent discoveries show that not only mechanical hardness and fracture toughness govern wear resistance, but also that oxidation at HT plays a significant role in the lubrication or wear failure of coatings. The tribo-induced metal oxides and/or Magnéli phases concentrated in the tribolayer are the key governing factors of friction and wear behavior at high temperatures. This review includes detailed insights into the advancements in wear resistance as well as various failure mechanisms associated with temperature changes.