Due to progress in manufacturing techniques, the performance of the harmonic drive has been improved but not sufficiently. One of the important problems which the current harmonic drive has is that while there is the potential for having a wider tooth contact area, the total number of teeth engaged simultaneously is still small. This is mainly due to the involute tooth profile. Hence, in this study, the cycloid-type tooth profile is developed to improve this problem. This paper represents the design methodology and performance evaluation f the cycloid-type harmonic drive. Cycloide tooth profile was derived by analyzing geometry of the tooth engagement and the contact mechanisms of the tooth which were examined and analyzed by load analysis. The stress due to elastic deformation of a flexspline was also obtained by approximate formula and computer analysis. Finally, the cycloid-type harmonic drive with 1:100 speed ratio was manufactured and the performance of the harmonic drive was evaluated.