A CAD/CAM system of cone-shaped tools for high-speed groove cutting on which many cemented carbide disposable tips are mounted is developed by applying the coordinate transformation method to a three-dimensional layout of the tip on the tool. The points considered in designing the tool are the selection of the cutting tool edge location on the cutter body to maintain the machining error within an allowable limit and the position of the tip posture to avoid interference of the flank with the machined surface. Following the tool design, the NC machining data of the cutter body for a five-axes controlled machine is generated automatically. Through the actual design and machining, the reliability of this CAD/CAM system is confirmed.