TiCN based submicron cermet and similar ISO grad of the conventional cermets with TiCN of different particle size were produced by PM process, and their microstructure, mechanical properties and cutting performance were compared. The microstructure of submicron cermet was more homogeneous and showed much finer microstructure, resulting in better hardness and fracture toughness. The submicron cermet tools achieved excellent cutting performance such as wear resistance and toughness in comparison with two grades of the conventional cermets in millimg test. The relationship between microstrucure, mechanical properties and cutting performance of these cermet tools was discussed. The submicron cermet tools revealed for their potential to wide application range and interrupt cutting because of their superior wear resistance and toughness combinations.