With the availability of ceramics (Al2O3, Al2O3-TiC), it is possible to machine very hard steel at different cutting conditions. When hardened steel STD 11 is turned using ceramic tools, chip formation is observed conical-herical and arc chips with a cyclic saw toothed type. The main cause of saw toothed chip formation is observed conical-herical and arc chips with a cyclic saw toothed type. The main cause of saw toothed chip formation is found to be periodic gross shear fracture extending from the free surface of the chip toward the tool tip. In regard to chip control, ceramic Al2O3 is superior to the other cutting tools. The roughness of machined surface was getting worse with increasing of cutting speed and feed.