The contact characteristics of transversely isotropic coatings are investigated for a cylinder within a circumferential groove using a two-dimensional finite element model. With the model, contact behavior is evaluated at more than 400 operating conditions by varying coating material, coating thickness, normal load, and cylinder/groove radii. Based on the finite element results, numerical expressions are derived for the maximum surface pressure, contact length, and approach distance as a function of a transversely isotropic coating parameter, ζ. The importance of these expressions, as related to design and the selection of materials for reducing wear in contacting surfaces, is subsequently discussed.