An internal finishing process by the application of magnetic abrasive machining has been developed as a new technology to obtain a fine inner surface of non-ferromagnetic pipe. In this paper, an abrasive slurry circulation system was designed and manufactured. As a result, it was found that a fine inner surface of pipe was available by the use of these machining methods. The basic machining characteristics of pin-type magnetic tools were analyzed experimentally. In addition, the experimental results show that pin-type magnetic tools have more machining efficiency than Iron particles as magnetic tools.