This paper presents an innovative design of a smart cutting tool, using two surface acoustic wave (SAW) strain sensors mounted onto the top and the side surface of the tool shank respectively, and its implementation and application perspectives. This surface acoustic wave-based smart cutting tool is capable of measuring the cutting force and the feed force in a real machining environment, after a calibration process under known cutting conditions. A hybrid dissimilar workpiece is then machined using the SAW-based smart cutting tool. The hybrid dissimilar material is made of two different materials, NiCu alloy (Monel) and steel, welded together to form a single bar; this can be used to simulate an abrupt change in material properties. The property transition zone is successfully detected by the tool; the sensor feedback can then be used to initiate a change in the machining parameters to compensate for the altered material properties.The UK Technology Strategy Board (TSB) for supporting this research (SEEM Project, contract No. BD266E
