We examine a, hitherto, little-studied and curious machining chip morphology, with tell-tale signs of folding at two different length scales, that is common in cutting of certain ductile and highly strain-hardening metals like soft aluminum alloys, tantalum and niobium. This chip morphology does not appear in the usual catalogues of common chip types. The mechanics of formation of the “dual-scale folded chip” is studied in model material systems of commercially pure aluminum alloys (AA 1100 and AA 8040), that prominently exhibit this chip morphology. The flow, folding and associated plastic instabilities are investigated using micro/macro structure observations of the chip in a plane-strain cutting framework, with high-speed in situ imaging and image analysis of material flow; and force measurements. The smaller-scale folding is shown to develop in the primary deformation zone while the larger-scale folding occurs as the chip traverses the rake face of the tool. The resulting chip is composed of irregularly-spaced large folds, superimposed onto which are the quasi-periodic small folds. The representative wavelengths of the two folds differ on average by an order of magnitude, 0.1 mm vs. 2 mm. The observations reveal a direct coupling between the material flow and chip morphology, and how specific attributes of the dual-scale folded chip arise from the flow mechanism. Plastic buckling is found to play a key role in the folding at both length scales. The small-scale folds are characteristic of a sinuous plastic flow mode, while the large-scale folding is characterized by buckling and stick-slip along the tool rake face, triggered by adhesive pinning of the chip to the tool. Important consequences of the dual-scale folding are very large cutting forces, and force oscillations of large amplitude, despite the alloys being very soft, only ∼25 HV. The dual-scale folding is why many of these alloys are classified as “gummy” to machine. Since the dual-scale folded chip is associated with large cutting forces and poor surface quality, there is much to be gained by disrupting this flow type in practical machining applications. Methods for controlling the folding to improve machining performance with the gummy alloys are briefly discussed.