The methods of making diamond tools have undergone a fantastic development since the invention of the synthetic diamond in the mid-1950’s. Over time, new production techniques based on diamond tooling have been implemented into various areas of industrial activity enabling to do the job faster, more accurately and at less cost. The recent statistics indicate that the consumption of diamond abrasives reached an impressive volume of billion carats in 2000, as compared with 380 million carats in 1990 and 100 million carats in 1980. In the new millennium the market for diamond tools continues to grow rapidly. The present decline in the price of industrial diamond makes it a commoditised product capable of competing with conventional abrasives. In terms of production volume, by far the largest group of diamond tools comprises the metal-bonded diamond impregnated tools, such as circular and frame sawblades, wire saws, and core drills for cutting natural stone and construction materials, and core bits for drilling in various rock formations. The objective of this article is to provide a compendious coverage of the PM diamond tool-making routes, and to identify the recent trends towards changing the tool design and composition to render it cheaper and more efficient.