Single point diamond-tipped tools are used for high speed machining on CNC machining centres and for forming complex profiles on grinding wheels used on very hard/tough materials for the aerospace and automobile industries. Most of the cost of the tools is in the diamond itself and much of the expensive diamond is used to locate it in a steel shank rather tnan for its prime purpose of cutting. The resultant high cost prevents the broader acceptance of these tools which, if used more generally, could lead to greater efficiency and quality in European manufacturing companies. The project proposes to enable the use of smaller diamonds by reducing the amount necessary for location by the application of innovative laser technia,ues both for metal deposition and for modifying diamond shape and surface texture. These approaches to metal deposition and securing will be made and assessed and concurrently laser technia,ues will be developed for modifying diamonds. Wider-ranging applications for the developed technologies are foreseen in the aerospace and medical eauipment fields.