The properties of AlN render this material very attractive for optical, electronic, and tribological applications; thus, a great interest exists for the production of thin AlN films on a variety of substrates. Many methods have been developed for this purpose where two processes stand out: plasma-assisted nitriding (PAN) and PVD coating. In the present paper, we compare the processing advantages and disadvantages of both methods in terms of the characteristics of the layers formed. AlN production by ion nitriding is very sensitive to presputtering cleaning and working pressure. Layers several micrometers thick can be produced in a few hours, which are formed by a fine mixture of Al+AlN. The surface morphology of the layers is rather rough. On the other hand, formation of PVD AlN coatings by DC reactive magnetron sputtering is more readily performed and better controlled than in ion nitriding. PVD results in macroscopically smoother AlN films and with similar thickness than the ion nitrided layers but produced in shorter processing times. The morphology of the PVD AlN layers is columnar with a fairly flat surface. Mechanisms for the formation of both types of AlN layers are proposed. One of the main differences between the two processes that explain the different AlN layer morphologies is the energy of the particles that arrive at the substrate. Considering only the processing advantages and the morphology of the AlN layers formed, PVD performs better than PAN processing. (C) 2004 Elsevier B.V. All rights reserved.