Tool management based on Flexible Manufacturing System (FMS) is important in settling the problems brought about by the machining of many kinds of productions in small scale. Through the research about tool management based on FMS, the flowing conclusions were concluded. The device configuration of tool management system based on FMS was provided, and the realization of tool coding was completed by use of flexible coding method. The information flow of tool and the function modules of the tool management system were investigated. The Tool management system was developed, the main functions were realized and some soft interface of tool management system was presented. Tool management system provides an efficient path to make system more flexible and improve the efficiency and quality of manufacturer.