Objectives: In this paper, the surface of sheet metal forming tool is coated by physical vapour deposition with molybdenum disulphide with the aim of preventing their premature failure. Method/Analysis: Physical Vapor Deposition (PVD) coatings have held a prominent position in this field for the last one decade. Although low friction coatings are deposited with good adhesion to the substrate there is a possibility of surface coating with poor adhesion. In the present paper molybdenum disulphide was deposited on D2 tool steel specimen by thermal evaporation. The effect of multilayer on microstructure, micro hardness, coating thickness and film adhesion were studied. Findings: It had been found that multilayer coatings has provided with improved adhesion, non columnar microstructure and harder surfaces. Improvement: The multilayer PVD MoS2 coatings provide a hard and wear resistant surface on sheet metal forming tool and improve its life.