In metal cutting various types of chips are produced in consequence of cutting conditions. Flow-type chips have been studied in most cases because they are easier to be analyzed, but the actual surfaces of chips are not smooth, but crushed. This paper deals with saw-toothed chips, special types of flow-type chips, which have deep concaves and high convexes and sharp angles on the free surface. I tried to establish the theory of saw-toothed chip mechanism through experimental observation, that is, the mathmatical model of the cutting energy and cutting mechanism through the geometrical observation of the chips by using a microscope. The results obtained are as follows: 1. The mechanism of saw-toothed chips is diffenent from that of general flow-chips. 2. In the case of saw-toothed chips, the shear angle must be measured by the hypotenuse angle and the rake angle, and the shear angle is more affected by the rake angle than by the hypotenbuse angle. 3. The friction angle is represented by .beta. = . pi. /4+ .alpha./ sub n/- .phi. which is different from Merchant's equation. 4. The pitch and the slip are greatly influenced by depth of cut, but the influence of the rake angle on it is small. 5. The normal stress and the shear stress on the shear plane decrease with the increase of the cutting depth, and they are almost independent on the variation of a rake angle. 6. The unit friction energy on the tool face, the unit shear energy on the shear plane, and the total cutting energy per unit volume decrease with the increase of rake angle and cutting depth.