Ultrasonic cavitation is an extremely complex physical phenomenon. It displays a series of nonlinear dynamics as the bubbles oscillating, growth, shrinkage and even collapse. For ultrasonic honing, it causes the device to generate chatter and noise because of the cavitation effect, and even generates denudation on the workpiece surface. In this paper, it describes the cavitation mechanism in ultrasonic honing, and analysises the acoustic pressure of the formation of cavitation from the numerical, furthermore it experimentally demonstrated. It also analyzes the nonlinear oscillation of cavitation bubbles for the impact on the ultrasonic honing chatter. Through studying on ultrasonic cavitation mechanism of honing, it provided a theoretical basis to solution the problem of the ultrasonic honing chatter and improves the level of precision and ultra precision machining.