Blanking of sheet steels is one of the most frequently used processes in the manufacturing industry. During blanking processes, the wear of punches occurs due to the cyclic contact of the opposite surfaces. Therefore, the punch is exposed to high stresses and requires high resistance against wear. When worn tools are used, the tool surface directly affects the quality of sheet products and causes some surface defects. The PVD coating of the punch with a surface layer of improved hardness and low friction may reduce wear. The aim of the present study is to characterize the tool wear of AlCrN coated punch used for the sheet-steel blanking. The worn punch surfaces were examined by scanning electron microscopy. The results showed that wear take place due to the abrasion, adhesion, and delamination along sliding flank surfaces. Edge rounding and fracture of cutting edges were also observed. After blanking tests, the tool wear volume of punches and the burr height of blanked parts were also measured. The wear volumes were determined by means of profile measurements of the worn punch carried out after the completion of a large amount of blanked parts.