Grinding is one of the important machining processes for the WC-Co carbide product. Different grinding strategies will have different impact on the work piece material. This study focuses on the WC-Co carbide grinding process, and the effect of grinding condition on the WC-Co carbide microstructure, figures out the relationship between different grinding strategies and material microstructure which relate to the WC-Co carbide tool failure. A specific microstructure analysis with Scanning Electric Microscope (SEM) will be presented based on a series of grinding experiments. The residual stress that generated in the grinding process will also be discussed based on the X-Ray Diffraction (XRD) measurements. It has been found that micro cracks are generated at certain grinding conditions with certain level. The residual stress which generated in the grinding process can be calculated by the d-spacing shift, and the comparison results show micro-cracks level is corresponding with the peaks shift in XRD test.