The dynamic characteristics of machine tool is an important factor, which make affect on the cutting stability of machine tool. The poor dynamic characteristics will seriously affect the stability of cutting, make the low cutting efficiency and low machining precision, and also accelerate the wear of tools and even reduce the machine’s service life. So it is necessary to analyze the dynamic characteristics of machine tool, and according to the results of analysis to optimize structural parameters and motion parameters of the machine tools. This paper analyses the dynamic characteristics of machine bed and machined work piece of the CNC special machine tool for Kelly with the finite element software, and analysis of excitation characteristics of cutting tool. It also makes optimization design to the machine bed, through the analysis and optimization, the natural frequency and stiffness will be obviously improved. According to the structure and calculation of the motion parameters we can get the exciting force frequency to workpiece when it is cut, using interlocking tooth cutting method to replace the initial symmetrical cutting method in order to avoid the resonance produced in the cutting process and improve stability. The exciting frequency when cutting can be improved and the probability of resonance when cutting is lowered. All these ensure high efficiency and high stability cutting.