Vanadis 4E is a powder metallurgical cold work tool steel which offers very good combination of wear resistance and ductility. It is commonly used in blanking and forming, cold extrusion tooling, powder pressing and knives. In this study, face milling was applied on Vanadis 4E powder metallurgical cold work tool steel with a size of 100 x 80 x 30 mm(3) and the effects of cutting parameters on surface roughness and tool wear were investigated during milling. Taguchi L-9 (3(4)) orthogonal arrays were used for the experiments and nine tests were performed. Three different coated inserts (CVD/Al2O3-TiCN-TiN coated insert, PVD/TiAlN nanolayer coated insert and PVD/TiB2 coated insert), three different cutting depths (0.3, 0.5 and 0.7 mm), three different cutting speeds (150, 180 and 200 m/min) and three different feeds (0.1, 0.2 and 0.3 mm/tooth) were used in the tests. Surface roughness measurements were made for each test and tool wear measurements were performed for each test by repeating each test six times. Cutting data parameters were optimized by using roughness and wear values and the results were evaluated through signal-to-noise ratio (S/N), analysis of variance (ANOVA) and three-dimensional graphics, after then, mathematical models for surface roughness and tool wear were obtained by using fit regression model. Three verification tests were performed using the optimum parameters after optimization. Verification test results showed that the Taguchi method was successfully applied to optimize the cutting parameters for minimum surface roughness and tool wear in Vanadis 4E milling.