Although the porous metal bonded diamond grinding wheel, which has recently been developed, had an excellent grinding performance for hard-brittle materials, its applications were only in precision grinding in past study. A new method for fabricating the new porous metal bonded diamond grinding wheel by Ni-Cr alloy as bond and vacuum loose powder sintering was proposed in this paper. The morphology of cross section of the segments and microstructure of interface between diamond grits and bond were analyzed. The wetting mechanism between Ni-Cr alloy bond and diamond is reacting wetting. Machining performance experiments about grinding ratio and surface roughness have been carried out. The testing results show that the porous Ni-Cr alloy bonded diamond grinding wheel has certainly fine machining performance in high grinding force occasion, and the maximal grinding ratio and best surface roughness were 6660 and 1.08 m, respectively.