There is a substantial increase on carbon-carbon composites use for engineering applications, considering its high temperature properties and low specific mass. However the machining costs are relatively high, and new cutting tools, mainly ceramics, must be developed to overcome such difficulty, aiming cost reductions. In this work, silicon nitride based ceramics has been prepared , by pressureless sintering of silicon nitride powders and appropriate amounts of Al2O3,Ce2O3, Y2O3 and AlN. Cutting tools were prepared from the sintered materials, with geometry according to ISO1832. Selected cutting tools were also diamond coated by a hot filament-assisted Chemical Vapor Deposition (HFCVD) diamond coating process. Carbon Fiber Reinforced Carbon (CFRP) composites machining was performed, to evaluate the diamond coating influence on machining performance. After the tests, the uncoated tools presented severe flank wear and shorter life than the diamond coated ceramic tools. This flank wear is caused by the abrasive carbon powder generated during the facing operation. On CVD diamond coated α-SiAlON ceramic tools, no flank wear was observed, and the cutting edge remained unmodified, even for severe test conditions, such as high cutting length and speed. Carbon particles, originated from the machined composite, do not promotes diamond film rupture, but instead, acts as lubricant film and reduces composite surface initial roughness.