In current precision and ultraprecision machining practice, the positioning and control of actuation systems, such as slideways and spindles, are heavily dependent on the use of linear or rotary encoders. However, positioning control is passive because of the lack of direct monitoring and control of the tool and workpiece positions in the dynamic machining process and also because it is assumed that the machining system is rigid and the cutting dynamics are stable. In ultraprecision machining of freeform surfaces using slow tool servo mode in particular, however, account must be taken of the machining dynamics and dynamic synchronization of the cutting tool and workpiece positioning. The important question also arises as to how ultraprecision machining systems can be designed and developed to work better in this application scenario. In this paper, an innovative dynamics-oriented engineering approach is presented for ultraprecision machining of freeform surfaces using slow tool servo mode. The approach is focused on seamless integration of multibody dynamics, cutting forces, and machining dynamics, while targeting the positioning and control of the tool–workpiece loop in the machining system. The positioning and motion control between the cutting tool and workpiece surface are further studied in the presence of interfacial interactions at the tool tip and workpiece surface. The interfacial cutting physics and dynamics are likely to be at the core of in-process monitoring applicable to ultraprecision machining systems. The approach is illustrated using a virtual machining system developed and supported with simulations and experimental trials. Furthermore, the paper provides further explorations and discussion on implementation perspectives of the approach, in combination with case studies, as well as discussing its fundamental and industrial implications.