Virtual manufacturing (VM), which primarily aimed at reducing the lead times to market and costs associated with new product development, offers various test-beds for the time-consuming and expensive physical experimentation. Since surface roughness and form accuracy play essential roles in the functional performance of the products machined with ultra-precision machining technology. An optimizer, VSPDT (virtual single point diamond turning) system was developed for the purpose of form error compensation and optimal cutting parameters selection. In this paper, the keys issues for developing VSPDT using virtual manufacturing technology were highlighted such as framework of system, virtual workpiece, virtual machining and inspection, etc. At the end of the paper, A VSPDT was developed and applied to predict and compensate the form error, select optimal cutting parameters by using a 2-axis CNC ultra-precision turning machine.