Automatic monitoring of the cutting conditions is one of the most improtant technologies in machining. In this study, the feasibility in applying acoustic emission(AE) signals for the in-process detection of endmill wear and fracture has been investigated by performing experimental test on the NC vertical milling machine with SM45C for specimen. As the results of detecting and analyzing AE signals on various cutting conditions, the followings have confirmed. (1) The RMS value of acoustic emission is related sensitively to the cutting velocity, but is not affected largely by feed rate. (2) The burst type AE signals of high level have been observed when removing chips distorderly and discontinuously. (3) When the RMS value grows up rapidly due to the increase of wear the endmill are generally broken or fractured, but when the endmills fracture at the conditions of smooth chip-flow or built-up-edge(BUE) occurred frequently, the rapid change of the RMS arenot found. And it is expected that this technigue will be quite useful for in-process sensing of tool wear and fracture.