In this work, an effort is made to investigate the behavior of a chip, from its initial flow to its final breaking stage. The expression for chip flow in grooved tools is verified analytically using FEM. Cutting parameters like velocity and depth of cut have a profound influence on chip flow behavior. Chip curling increases and, for a given tool geometry, effectiveness of the groove increases with increasing depth of cut. The feasibility of tool design using FEM simulations is also demonstrated. Optimization of tool geometry results in better chip control.