Positional accuracy is critically important for application of industrial robots in fixtureless precision manufacturing; thus, this paper presents a method for simultaneously calibrating the kinematic parameters of robot and robot-mounted measurement devices. In the modeling step, the Modified Denavit–Hartenberg parameters are extended to include the world and tool frames within a minimal parameter set using a systematic approach. Closed-loop calibration is performed using the data collected in the local target workspace using the robot-mounted measurement device. The presented modeling and calibration methods are applied to a case study in which a machining task is performed using a DENSO VS-6556 W industrial robot equipped with a cutting tool, force sensor, and laser profile scanner. In the case study, local models are calibrated for the laser and tool frames using common 1-2-3 blocks as calibration artifacts . The robot/laser model is identified by scanning the artifacts with a robot-mounted laser scanner , and the robot/tool model is calibrated by touching the artifacts with a robot-mounted force sensor. In this application, the robot/laser model is used to scan and register a sheet metal workpiece, and the robot/tool model is used to plan a tool path to machine the periphery. Positional accuracy of the tool path was evaluated to be ± 0.15 mm within the target workspace, which shows significant improvement compared with the mean error of 0.8 mm achieved by global calibration of the robot/tool model. • Simultaneous calibration of robot and extrinsic parameters of robot-mounted sensors. • Closed-loop calibration without external measurement devices. • Local calibration to improve accuracy within target workspace. • Systematic approach to include world and tool/sensor frame in MDH parameter set. • Case study for high-accuracy robotic machining application.