Tool condition monitoring has been considered as one of the key enabling technologies for manufacturing optimization. Due to the high cost and limited system openness, the relevant developed systems have not been widely adopted by industries, especially Small and Medium-sized Enterprises. In this research, a cost-effective, wireless communication enabled, multi-sensor based tool condition monitoring system has been developed. Various sensor data, such as vibration, cutting force and power data, as well as actual machining parameters, have been collected to support efficient tool condition monitoring and life estimation. The effectiveness of the developed system has been validated via machining cases. The system can be extended to wide manufacturing applications