Tools steels are defined by their wear resistance, hardness, and durability which, in large part, is achieve by the presence of carbide-forming alloys such as chromium, molybdenum, tungsten, and vanadium. This chapter describes the alloying principles employed in various tool steels, including high-speed, water-hardening, shock-resistant, and hot and cold work tool steels. It discusses the influence of alloy design on the evolution of microstructure and properties during solidification, heat treating, and hardening operations. It also describes critical phase transformations and the effects of partitioning, precipitation, segregation, and retained austenite.