Manufacturing of vitrified bond CBN wheels for internal precision grinding of the air-conditioner compressor piston hole is still big challenge to all of the domestic manufacturers. Recently, by choosing pre-melting mixed CBN abrasives and a proper sintering process, a cost-effective method was conceived to produce grinding wheels of comparative quality. The grinding performance of wheels was evaluated with a series of internal precision grinding of compressor piston hole. Experimental results show that the vitrified bond CBN grinding wheel produced by this method has better grinding performance, and can be substitute to the same type of grinding wheels imported. But the manufacturing cost is only 60% of the wheel imported according to estimation.