The nickel coatings and electroplated diamond tools were fabricated with ultrasonic and without ultrasonic condition. Hardness and adhesive strength of nickel coatings were tested. Diamond grains on tool substrate were observed with microscope. Al2O3 ceramic was machined with fabricated electroplated diamond tools to compare material removal rate and grinding ratio. Experimental results show that high hardness can be obtained under the effect of ultrasonic during tool fabrication processes. Ultrasonic agitation can make grain dense and guarantee nice contact between substrate and coating. With ultrasonic power of 200W, nickel coating presents highest values of hardness and adhesive strength. High grain density of diamond tool can be obtained. During buildup processes, some buildup time is needed to obtain enough thickness of nickel coating before ultrasonic agitation is applied. Grinding ratios of diamond tool with ultrasonic during buildup processes were better than without ultrasonic. The diamond tool fabricated with ultrasonic agitation presents better cutting ability. During tool fabricating processes, the reasonable application of ultrasonic agitation is very important.