In machining, the size effect is typically characterized by a non-linear increase in the specific cutting energy (or specific cutting force) as the uncut chip thickness is decreased. A finite element model of orthogonal micro-cutting was established to study the influence of tool edge radius on size effect when cutting 7050-T7451 aluminum alloy. Diamond cutting tool was used in the simulation. Specific cutting force and specific cutting energy are obtained through the simulation. The nonlinear scaling phenomenon is evident. The likely explanations for the size effect in small uncut chip thickness were discussed in this paper.