A method of producing coated ultra-hard abrasive material, in particular coated diamond and CBN material. In a first step, an element capable of forming (singly or in combination) carbides, nitrides or borides to the surface(s) of the abrasive material is is applied using a hot coating process. At least one outer layer of a coating material selected from the group comprising transition metals, carbide, nitride, boride, oxide and carbonitride forming metals, metal carbides, metal nitrides, metal borides, metal oxides and metal carbonitrides, boronitrides and borocarbonitrides is applied over the inner layer by physical vapour deposition or chemical vapour deposition. Typically the inner layer elements come from groups IVa, Va, VIa, IIIb and IVb of the periodic table and include, for example, vanadium, molybdenum, tantalum, indium, zirconium, niobium, tungsten, aluminium, boron and silicon. The outer coating is preferably applied by reactive sputtering where a reactive gas is admitted to the sputtering chamber, resulting in the deposition of a compound of the reactive gas and the element being sputtered.