New thin film materials in the M-A-X systems have recently been given a considerable attention. In these systems M represents a transition metal, A is a so-called A-element typically from group 13-15 (e.g. Si, Al, Ge) and X is either carbon or nitrogen. An interesting group of compounds in these systems are the nanolaminated MAX-phases with a general composition M@sub n+1@AX@sub n@ where n=1,2 or 3. They can be described as nanolaminates of metal carbides or metal nitrides separated by A-layers. The nanolaminated structure gives rise to special chemical and physical properties that suggest a potential use of these materials in different thin film applications such as low-friction materials, thermal protection coatings and chemically resistant coatings. Today, these compounds can be deposited as thin films using e.g. magnetron sputtering. Depending on the process parameters, however, also other types of thin film materials can be obtained. This includes other compounds such as perovskites and metastable solid solutions of metal carbides/nitrides with extremely high A-contents. Other examples are nanocomposites of carbides and nitrides in an A-containing matrix or other types of self-organizing microstructures. During thin film growth all these different types of materials and microstructures may be formed and a careful tuning of process parameters is required. This paper will discuss how phase composition and microstructure can be controlled in e.g the Ti-Si-C, Ti-Al-C and Ta-Al-C systems. The possibilities to design functional coatings for various applications will be discussed.