In this study, we investigated thermal influence on surface layer of CFRP in grinding with heat conduction analysis using grinding temperature at wheel contact area on dry and wet condition. Moreover, the thermal affected layer was analyzed through an experiment to examine the temperature of glass transition and thermal decomposition of the matrix resin that composes the CFRP used in this study. The influence of thermal effect on grinding of CFRP was verified based on observation of ground surface finish after grinding using SEM and the measurement of surface roughness. From the measurement result of DSC (Differential Scanning Calorimetry),TG-DTA (Thermogravimetry-Differential Thermal Analysis), It was found that the thermal affected layer of CFRP includes a layer in which the matrix resin is changed in quality by exceeding the glass transition temperature and a layer in which the matrix resin is thermally decomposed by exceeding the thermal decomposition temperature. In addition, it was found that the surface roughness was significantly reduced if the thermal affected layer with thermal decomposition was generated. In each grinding atmosphere, it tended to increase of grinding temperature at wheel contact area with increasing in the setting depth of cut. In the case of dry grinding, grinding temperature at wheel contact area increased up to t thermal decomposition temperature of the matrix resin. However, in the case of the wet grinding, grinding temperature at wheel contact area did not increase until thermally decomposition temperature. From the result of simulation about thermal affected layer, influence of grinding heat increased with increasing in the setting depth of cut. Ultimately, the thermal affected layer with thermal decomposition was generated in dry grinding. Moreover, from the results of SEM observation, it was confirmed that the surface finish properties deteriorated significantly due to thermal decomposition of the matrix resin in the case of Δ = 400 μm in the setting depth of cut at fiber angle θ = 0°. On the other hand, it was confirmed that the micro damage of carbon fiber was occurred in wet grinding at each setting depth of cut.