Despite significant advancements in both measurement systems and machine learning techniques, the integration of these technologies for real-time tool fault diagnosis in milling processes remains under developed. Existing studies tend to focus on a comprehensive comparative analysis that bridges these two areas machine learning algorithms or the application of specific measurement sys-tems. There is also a gap in evaluating the cost-effectiveness and practicality of different measurement systems when integrated with machine learning models for industrial applications. This study addresses these gaps by conducting a detailed comparative analysis of multiple measurement sys-tems and their performance with machine learning techniques in a real-world milling context, aim-ing to provide practical recommendations for industry adoption. Using both traditional and Artificial Intelligence (AI) to define and exploit sensory systems in the milling process, as well as various (direct and indirect) monitoring approaches, are summarised in this study. Machine learning tech-niques SVM, KNN, DT performs better and provide higher accuracy and in feature extraction clas-sification techniques statistical features, wavelet transform with the Holder Exponent (HE) having higher accuracy for diagnosing the tool faults.