Smart machining has tremendous potential and is becoming one of new generation high value precision manufacturing technologies in line with the advance of Industry 4.0 concepts. This paper presents some innovative design concepts and, in particular, the development of four types of smart cutting tools, including a force-based smart cutting tool, a temperature-based internally-cooled cutting tool, a fast tool servo(FTS) and smart collets for ultraprecision and micro manufacturing purposes. Implementation and application perspectives of these smart cutting tools are explored and discussed particularly for smart machining against a number of industrial application requirements. They are contamination-free machining,machining of tool-wear-prone Si-based infra-red devices and medical applications, high speed micro milling and micro drilling, etc. Furthermore, implementation techniques are presented focusing on:(a) plug-and-produce design principle and the associated smart control algorithms,(b) piezoelectric film and surface acoustic wave transducers to measure cutting forces in process,(c) critical cutting temperature control in real-time machining,(d) inprocess calibration through machining trials,(e) FE-based design and analysis of smart cutting tools, and(f) application exemplars on adaptive smart machining. Smart machining has tremendous potential and is becoming one of new generation high value precision manufacturing technologies in line with the advance of Industry 4.0 concepts. This paper presents some innovative design concepts and, in particular, the development of four types of smart cutting tools, including a force-based smart cutting tool, a temperature-based internally-cooled cutting tool, a fast tool servo (FTS) and smart collets for ultraprecision and micro manufacturing purposes. Implementation and application perspectives of these smart cutting tools are explored and discussed particularly for They are contamination-free machining, machining of tool-wear-prone Si-based infra-red devices and medical applications, high speed micro milling and micro drilling, etc. Furthermore, implementation techniques are presented focusing on: (a) plug-and-produce design principle and the associated smart control algorithms , (b) piezoelectric film and surface acoustic wave transducers to measure cutting forces in process, (c) critical cutting temperature control in real-time machining, (d) in process calibration through machining trials, (e) FE-based design and analysis of smart cutting tools, and (f) application exemplars on adaptive smart machining.