Microstructure and mechanical properties of Ta-BC nanocrystalline layers prepared by magnetron sputtering were studied. DC magnetron sputtering was used to prepare thin layers on rotated substrates. Various deposition parameters were tested. Microstructure of layers was studied by means of scanning and transmission electron microscopy on thin lamellar cross sections prepared using a focussed ion beam. Both undisturbed layers and the volume under relatively large indentation prints (load of 1 N) were observed. The microstructure observations were correlated with mechanical properties characterized by means of nanoindentation experiments in both the static and the dynamic loading regime. Elastic modulus, indentation hardness and fracture resistance of prepared nanostructured coatings were evaluated and discussed.