Based on the magnetic field controlling principle, a new manufacturing method and experimental research of fine grain diamond grinding wheel were introduced. The magnetic particles could form spatial chain structures under magnetic field which can make abrasives distributed uniformly within the mold. Therefore, small surface roughness can be obtained when grinding. The manufacturing and dressing of fine grain diamond grinding wheel based on magnetic field controlling (acronym FGDWMC) were introduced. The comparison grinding tests between the magnetic field controlling and nonmagnetic field controlling of wheels were studied. The grinding experiment result showed that the surface roughness was better after being machined by FGDWMC, and it was improved by about 20nm.