Experimentally studied the effect of Annealing treated on AlCrN coating surface modification and AlCrN coating on the wear performance of High-carbon high-chromium AISI D2 steel in wet sliding. The Alcrona (AlCrN) coating was deposited with a thickness of about 4 ± 1μm using a PVD technique on to the polished surface of AISID2 steel. Pin-on-disc testing method with an ASTMG99 standard are carried out. To determine the tribological properties with a three series of load 10N, 20N and 30N for a sliding distance of 4500m at a constant velocity of 1.256 ms-1. The friction co-efficient and wear factor are analyzed primarily. The test results exposed that the Annealing treated on Alcrona AlCrN coating surface modification specimen shows better wear resistance as compared to Alcrona (AlCrN) coating on polished surface specimen. The grooved region, plugging, pits and cavities were examined on the tested specimen surface using macroscopic and scanning electron microscopy (SEM). Hence, the result of this study can be applied to improve the wear resistance in the application of AISID2 steel.