In this paper, the use of an active dynamic absorber to suppress machine tool chatter in a boring bar is studied. The vibrations of the system are reduced by moving an absorber mass using an active device such as an piezoelectric actuator, to generate an inertial force that counteracts the disturbance acting on the main system. An equivalent lumped mass model of a boring bar with active dynamic absorber is considered. A cutting process model that considers the dynamic variation of shear and friction angle, that causes self-excited chatter during the cutting process, is applied to the lumped mass model. The theory of regenerative chatter is also applied to the model. Stability boundaries have been calculated for maximum permissible width of cut as a function of cutting speed. A comparison of the boundaries for chatter-free cutting operation of a plain boring bar, a boring bar with passive tuned dynamic absorber and a boring bar with active dynamic absorber is provided in this paper. The comparison shows that a substantial increase in the maximum permissible width of cut for stable cutting operation, over a range of cutting speeds, is obtained for a boring bar equipped with an active dynamic absorber.