CVD diamond tools are becoming more widely used in industry as an economic alternative to polycrystalline diamond (PCD) for machining non-ferrous and non-metallic materials. Although CVD diamond-sheet tools have been on the market for several years, diamond-coated carbide inserts have become available only recently, with the successful resolution of long-standing adhesion problems. Diamond coating morphology on the rake surface of the tool affects chip formation favorably, whereas a microscopically rough, faceted morphology on the flank surface of the tool produces a rough workpiece finish. Workpiece finish can be improved by using a coated tool with a larger nose radius. The tool life provided by diamond-coated tools(~30 $mu extrm{m}$ thick) can meet or exceed that of PCD tools, depending on the characteristics of the workpiece material. When using diamond-coated carbide tools in milling, a sharp-edged PCD tool should be used in the wiper position of the cutter to minimize workpiece roughness and burr formation.