The influence of surface defects in arc-evaporated VxN PVD coatings on the adhesion, surface fatigue resistance, friction and wear characteristics has been investigated in a scratching contact using a diamond stylus and a sliding contact using a stainless steel pin. Post-test characterisation using scanning electron microscopy and 3D optical interferometric surface profilometry was performed in order to investigate the mechanical and tribological response of the coatings. The results show that surface defects such as droplets and craters show a strong influence on the tribological behaviour of the coatings causing abrasive wear of the counter surface and material pick-up on the coating surface. In contrast, the influence on the mechanical properties of the coatings, i.e. cracking behaviour, fatigue resistance, etc, was found to be relatively small and cracking seems to be restricted to larger droplets showing a low interfacial bonding to the adjacent coating matrix.