The purpose of this study is to enhance the practicability of the self-propelled rotary tools for high-performance machining of new industrial materials. Based on investigation of the rotary cutting mechanics, a new concept of rotary tool design featuring compact and simple structure has been developed and evaluated experimentally. Exhibiting superior cutting performance in machining new industrial materials equivalent to the previous design, the new cutting tools show higher rotating accuracy and stiffness resulting in better machined surface roughness. It enables the rotary cutting technology to be practicable in a number of machining operations where its predecessors have met difficulties because of their structural constraints.