Abstract In this paper are the published results of the systematic study of cutting conditions suitable for selected overlay type machining. With regard to overlay specific properties, the cutting conditions optimization starts usually from long-term tool-life tests. In this way, the determinated tool-life T–cutting speed v relationships are the starting values for the proper cutting conditions optimization, mostly calculated for the criterion of minimum productions costs. The overlay hardness HRC measurement, the study of chips shape and size and the surface roughness measurement were also part of the tests. On the basis of these tests and calculations, it is possible to state that three of five tested cutting materials are suitable for machining of this type of overlay. During the tests, it was proved that it is possible to evalute the overlay machining process with the chips form and surface roughness monitoring.