This paper discusses the feasibility of improving micro-machining accuracy by using two-dimensional(2-D) vibration cutting. Vibration cutting is generated by two piezo actuators arranged orthogonally : one is actuated by a sine curve voltage input, and the other is actuated by a phase-shifted sine curve voltage. A tool attached to the vibrator oscillates in a 2-D elliptical motion, depending on the frequencies, amplitudes, and the phase shifts of two input signals and the workpiece feedrate. Along the elliptical tool locus, cutting is done in the lower part, and non-cutting is done in the upper part. By this way a unique feature of 2-D vibration cutting, that is, air lubrication between a tool and chips, is caused. Another unique feature of 2-D vibration cutting was experimentally verified, that is, some negative thrust force occurs as the direction of chip movement on a tool rake face is reversed. Those features not only help chips flow smoothly and continuously but also reduce cutting force, which results in a higher quality machined surface. Through tool path simulations and experiments under several micro-machining conditions, the 2-D vibration cutting, compared to conventional cutting, was found to result in a great decrease in the cutting force, a much smoother surface, and much less burr.