Peripheral pocket or contour milling in wood machining, using flat end milling tool, can be performed with different tool paths. Technology designers of multi axis CNC wood machining use their experience and intuition to choose some of the options offered by CAM systems that determine the final shape of tool path, thus the generated tool path largely depend on individual judgment. Minimum cutting force, maximum dynamic stability of the process and minimum tool wear are achieved, or some other technological requirements are met, by using optimal tool path. Tool path optimisation is based on analysis of possible tool paths and determination of cutting parameters which are dependable of chosen tool path and are affecting the main wood processing factors. Axial and radial depth of cut, engagement angle, feed and feed rate profile are identified as key parameters dependable of tool path, and their values and variations along the tool path influence the cutting speed, tool wear and cutting force. Knowledge of values and changes of those key machining parameters along the tool path is necessary for simulation and monitoring of the main cutting factors during the wood machining process. NC code transformation methodology and generation of tool path parameters necessary for calculating all elements needed for tool movement simulation from given NC programs are shown. Blank and tool mathematical description are used with tool movement information for simulation of wood machining process. Simulation of cutting parameters and their variation along the tool path, presented in this paper, can be used as bases for development of methodology for choosing the most adequate tool path for wood machining of given contour considering minimum cutting force and cutting force variation, minimum tool wear, maximum productivity or some other criteria.