Some researches on detecting cutting tool's damage have been done by using acoustic emission (AE) occurring on plastic deformation or destruction of tools. However, as long as we know, no good method has been developed. The paper shows experimental results as foundation to construct a system which in real time detects damage of cutting tools and controls stopping of cutting machines. The system consists of an AE sensor unit and microcomputers for data processing and control. Thus, it is expected that the system may be constructed in relatively low cost.