Crack of breaking toughness of most Ceramics material is 1-5MPa .root.m but that of Zirconia Ceramics is improved to be 6-8MPa .root.m and its development of machining difficult-to-machine material is on the rise as urgent subject. For general Zirconia Ceramics machining, diamond grinding wheel is generally used by selecting an appropriate one and establishing grinding condition but due to such limitations as economics, grinding efficiency and machining geometry, great interest in machining method being used for diamond tool is emphasized. But it is reported that diamond tool is oxidized by cutting heat in the air and is graphitized in vacuum, which causes bad effects on tool life. In this study, to restraint cutting heat the internal side of tool is cooled, and restraint low temperature cooling system and being experimented. Further, the machinability of diamond tool for Zirconia Ceramics machining is analyzed with respect to tool wear and stress.