Four SiC-Si$_3$N$_4$ceramic cutting tools with different composition have been fabricated by hot-pressing. Correlations among the annealing time, the corresponding microstructure and the mechanical properties of resulting ceramics have been investigated. The fracture toughness and the grain size of both SiC and Si$_3$N$_4$in SiC-Si$_3$N$_4$composites increased with the annealing time. 1`he hardness of SiC-Si$_3$N$_4$composites was relatively independent of the grain size and the sintered density. These ceramic cutting tools were tested under various cutting conditions and compared with the commercial Si$_3$N$_4$ceramic cutting tools. The experimental results were compared in terms of tool life and cutting force. The performance of SiC-Si$_3$N$_4$ceramic cutting tool shows the possibility to be a new ceramic tool.