In this paper, FEM is used to simulate the three stages of catastrophic shear occurrence, expansion and shear band formation when serrated chips are formed under adiabatic shear behavior in high-speed machining of hardened steel GCr15 with PCBN tool. By comparing data of simulation and experiment on chip morphology characters, it is indicated that they are in good accordance. Hereby, the author has analyzed strain and temperature distribution in adiabatic shear band, and dynamic characters of cutting force . The research results show that adiabatic shear band begins from tool tip and extends to workpiece free surface, and it is characterized by large strain and high temperature. In addition, it results from adiabatic shear behavior that cutting force waves regularly in a numerical range.