Abstract Cutting mechanism of CFRP is different from that of a homogeneous metal. For metal, high speed cutting can improve machining quality and efficiency. However, there is no agreed conclusion on the effect of cutting speed on the cutting mechanism of CFRP. This paper studies the effect of cutting speed on cutting mechanism of CFRP and damage formation by using finite element and experiment methods. A three-dimensional finite element model of orthogonal cutting CFRP is established considering the strain-rate-dependent mechanical properties of resin and the anisotropy of fiber. By this model, cutting processes at micro level are simulated. Fracture evolution processes of fiber and resin are characterized. Furthermore, experimental data of cutting forces are obtained, and the machined surface microstructure are observed based on orthogonal cutting experiments. Subsurface morphology and degree of resin cracking extension in simulation and experiment are consistent with each other. Results show that with the increase of cutting speed, the fiber deformation and the affected area before fiber fracture obviously deceases. Accordingly, the resin cracking and extension degree caused by the excessive deformation of fiber also be greatly reduced. In addition, there is a trend that the specific energy gap for different chip formation modes becomes smaller and smaller.