A study of cutting tool performance was conducted using poly-crystalline compact diamond (PCD); laser coated diamond coating tools, diamond facing tools, and C2 carbide inserts. The experiments are designed in a way that the PCD, CVD diamond coatings, diamond facing, and C2 carbide inserts can be tested and compared under the same cutting conditions. Although PCD is still the best cutting material of these inserts, the laser coated diamond and diamond-facing tools are closing the gap. The failure mode of a diamond coated insert can be described in the following steps. It starts with microattrition, during which gradually the coating on the cutting edge is worn out. Then the coating flakes off and the tool ceases to function. The diamond-facing insert has only the rake face treated. The surprisingly good performance of the diamond facing insert suggests that the tool's rake and flank face work as a team. Both diamond coating and diamond facing tools have good cutting performance and provide advantages in making lower cost tools with complex geometry. Presented at the 55th Annual Meeting in Nashville, Tennessee May 7–11, 2000