This paper describes evaluation and monitoring methods of machining characteristics for developed cutting machine of micro grooves. Experiments were conducted under various process conditions such as spindle revolution speed, feed rates and depth of groove. A precision blade was manufactured to cut micro grooves in the mold of a PDP barrier rib, while taking the groove shape into consideration. The groove cutting characteristics of the blade were evaluated by experimenting on STD11 and cemented carbide. AE technology was used to observe the state of the grooves. The obtained AE signals reliably represented the grooving quality and cutting conditions, as demonstrated through the use of a fuzzy C-means algorithm.