Reversible cutting method is a new research thesis proposed to shorten processing route, decrease tool number and handling time, increase machining efficiency. Based on nonlinear hardening during reverse loading and the change of the Bauschinger effect factor with plastic strain, reverse loading released strain energy of elastic responses of machined underlayer. The chip formation model of reversible finish cutting was established. The difference between the advance and return stroke was analyzed in crystal slipping and elongating, residual stress, micro-hardness of machined surface. Experimental research indicted that the results of micro-hardness of reversible fine machining technique are smaller than that of general fine machining, the circumferential residual stress at the finished surface is compressive, the surface roughness of machined surface are smaller than that of general fine machining. The kinematic hardening models of the advance and return stroke finishing cutting based on Bauschinger effect is presented.