Residual stresses of coated diamond grits were analyzed by a finite element unit cell model.Diamond grits coated with four types of metals, W, Mo, Ti, and Cr, were considered.The numerical results show that compressive stress occurs in the diamond particles and tensile stress occurs in the metal matrix; compressive stress is concentrated in the diamond sharp comer; interface stresses decrease by more than 1000 MPa with a metal interlayer; plastic deformation of the matrix begins near the sharp comer of diamond grits and extends toward the peripheral zone.Stress concentration dramatically decreases due to plastic deformation of the matrix.The deposition of transition metals on a diamond surface can dramatically promote the adhesion between diamond grits and the metal bond.