This research is aimed at developing a better understanding of ion beam-assisted deposition to produce useful coatings on metal alloys. Of particular interest are the effects of several process variables on the mechanical behavior of the coated materials. Film morphology, composition, and geometry are controlled to optimize film properties. Emphasis is on improved fracture toughness while maintaining oxidation resistance by creating alternating oxide (alumina) and metal (aluminum) layers. Mechanical properties are determined by the ultra-low load indentation method, tensile testing, four-point bending, and indentation-fracture techniques. The structure of the microlaminates is correlated with the processing parameters and mechanical properties.