For a multi-axis nonlinear milling system with piezoelectric actuators, a pseudo inverse dynamic surface active control scheme with adaptive fuzzy output-feedback is developed. The main contributions can be characterized as following: (1) to overcome the hysteresis non-linearities in the piezoelectric actuators, the new hysteresis pseudo inverse compensators are established to replace the conventional hysteresis direct-inverse model construction, which is a very challenging or even impossible work. The hysteresis pseudo inverse means that the hysteresis direct-inverse model is no longer essential any more, instead, a search algorithm for the actual control signal from the designed hysteretic temporary control laws are proposed to alleviate the hysteresis nonlinearities effectively; (2) to realized high-precision tracking control and mitigate chattering suppression in the micromilling systems, the fuzzy logic systems, the novel dynamic surface control algorithms and the modified high-gain states observer are designed to approximise the unknown continuous functions of the micromilling systems, design the high performance controller and estimate the immeasurable states in the control system, respectively; (3) the hardware-in-loop simulation platform is constructed and the experiments of tracking control and chattering suppression are implemented to validate the effectivity of the developed control scheme.