Abstract Inducing compressive stress on the machined surface is a desirable practice in ultra-precision metal cutting to improve the part quality. An important parameter to analyse the machining performance is the material flow stress, which plays a crucial role in the material deformation characteristics in machining. As the dimensions of the workpiece descend from macro to micro scale in metal forming, the flow stress reduces accordingly. Hence, based on the ‘surface model’ analogy developed for metal forming coupled with the crystal plasticity effect, an attempt has been made in this study to construct a flow stress model for ultra-precision machining process. While developing the model, for the first time, the size factor (η, d/ho) is introduced to incorporate the material ‘grain size effect’ in ultra-precision machining. The proposed model is validated with experimental results of Al6082 alloy of different grain sizes. Orthogonal turning experiments were conducted on an ultra-precision machine by utilizing the concept of ‘cutting edge radius effect’, which is identified as the relative tool sharpness (RTS) and quantified as the ratio of undeformed chip thickness (hc) to edge radius (rn). In this paper, the investigation on the material flow stress is carried out by considering the phenomenon of the shifting material flow separation (cutting) from primary deformation zone to material deformation (ploughing and rubbing) at tertiary deformation zone. The distribution of contact stresses along the tool rake and flank faces at the minimum value of RTS (hc/rn) of 0.01 substantiates the ploughing effect (compressive stresses are induced into the machined layer) rather than chip separation. Moreover, the distinct variation of the machined surface quality and μ-chip morphology at the extreme low and high RTS conditions distinguishes the material ploughing effect from the cutting effect. Additionally, for the same RTS value, it is found that different grain materials (Cu and Mg alloy) exhibited variations in flow stress, chip morphology and surface quality. Therefore, material grain size is an influential factor for analysing machining performance with material flow stress at ultra-precision level.