Abstract: The finite element method is used with the software LS-DYNA to simulate metal cutting process so as to investigate how the stress, strain and temperature change in workpiece. The simulation results show that the chip formation process is actually a plastic deformation process in which the tool rake presses cutting layer material along a slope to form the shearing slip. The maximum effective stress fluctuates around a constant value during stable cutting, and the residual stress in formed workpiece surface results from the pressing force due to rounded cutting edge. The cutting heat is mainly kept in the chips, while the cutting temperature decreases gradually from the inner to the outer layers of chips. The method proposed, as an ancillary means to shorten the time for the lengthy and tedious experiments, will provide an effective way and theoretical reference for the study on the principle of metal cutting and design of the relevant technological process.