A cutting tool with a substrate which is coated with a coating layer containing TiaAlbNbdMe(C1-xNx), where M represents one or more elements selected from among Si, W, Mo, Ta, Hf, Cr, Zr and Y, where 0.1≦a≦0.7, 0≦b≦0.8, 0.02≦d≦0.25, 0≦e≦25, a+b+d+e=1.0 and 0≦x≦1 and is provided with a rake face; a flank face; a cutting edge between the rake face and the flank face; and droplets on the surface of the coating layer. The droplets include finer droplets having particle diameters of 300 nm or less; and coarser droplets having particle diameters of 1000 nm or more. The flank face has a higher percentage of the finer droplets than the rake face. An Nb content in the coarser droplets on the flank face is higher than an Nb of the coarser droplets on the rake face.