Axial hole deviation in deep hole drilling results in degradation of the quality and a decrease in the yield rate of products. The new laser-guided BTA tool has been developed to prevent the hole deviation. The tool can bore deeper holes than 500 mm with high accuracies. The tool was guided by an argon laser and piezoelectric translators for detecting and changing its attitude, respectively. Two kinds of experiments were carried out to examine the performance of this tool in detail and to determine its practical application, using a duralumin (A2017-T4) workpiece with a prebored 108 mm diameter hole. The first experiment was to examine whether the tool can be precisely manipulated by a computer. The second was to examine whether the tool can be guided toward the target. The target was located in front of the tool and moved from side to side, perpendicular to the rotational axis of a spindle. The experiment was performed with a rotating tool-stationary workpiece system. Rotational speed was 270 rpm and feed was 0.125 mm/rev. Tool diameter was 110 mm. The results show that the tool can turn its course to correct hole deviation.