The present invention relates to a coated cutting tool comprising a body of cemented carbide and a wear resistant coating thereon, wherein the cemented carbide consists of WC grains and eta phase grains embedded in a metallic binder, wherein the metallic binder comprises Co and Cr, the Co content in the cemented carbide is 6-12 wt%, the eta phase content in the metallic binder is 4-5 vol% and the average grain size of the eta phase grains is 1-5 µm, and wherein the Cr/Co ratio in the cemented carbide is 1.0 - 2.5 %.