Milling water chamber head material 508 III steel belongs to extreme manufacturing, and the tool failure is very serious in the process of machining. How to monitor and identify the tool wear damage state in time and effectively is a key problem to be solved urgently. Identifying chip morphology changes under machining conditions plays a very important role in characterizing tool wear and breakage. Tool wear has an important influence on the chip morphology during the process of milling 508III steel, and changes in chip morphology can also reflect the tool wear and breakage state. Therefore, this paper takes the chip morphology image as an important feature for tool wear and breakage recognition, and uses Gaussian fuzzy estimation morphology method to preprocess the chip morphology image. Build a ResNet network combined by convolutional block attention module (ResNet-CBAM) tool wear and breakage recognition model, and explore the selection of the model backbone network, determination of the ResNet backbone network depth, and fusion methods of different attention mechanisms. Through the ablation experiment and visual analysis of the attention mechanism module, it is verified that the ResNet-CBAM model proposed in this paper has an accuracy rate of 96.67% in tool wear and breakage state recognition, especially in the stage of severe tool wear and breakage. This study realizes the prediction and early warning of tool life, and provides effective guarantee for the efficient cutting of large parts of high-end equipment and the stable operation of manufacturing system.