Abstract High speed machine tools are required to operate in a wide range of spindle rotational speeds with high stiffness and high accuracy. The stiffness of the spindle is largely dependent on the axial preload of the angular contact bearings. A large preload is required at lower range of speeds to provide sufficient stiffness for vibration-free heavy cutting. However, at higher speeds, it results in rapid temperature rise and reduces the life of the bearing. For optimum performance, it is essential that the bearing preload is reduced as the rotational speed increases. In this paper, an automatic variable preload system is proposed that changes the preload on the bearings as a function of rotational speed. This system is based on the use of centrifugal forces and requires little space inside the spindle. The performance of this mechanical system is determined using finite element modeling. A prototype of the system is fabricated and its performance is investigated using a specially devised test stand for direct measurement of the preload. The effectiveness of the proposed system in reducing the preload at higher speeds is demonstrated.