Micro-machine tool is essential in the micro/meso cutting for the sake of saving of space, resources, and energy. In this research, a micro-turning lathe was fabricated with piezoelectric feed drive mechanism, and motion of each axis was generated by stepwise mechanism with two piezo actuators. The resolution to drive the axis was $0.05{mu}m$ and position accuracy less than $2{mu}m$ was assured. From the positioning experiment, piezo feed mechanism is good enough for the micro machine tools. Many fuming experiments were carried out with diamond-cutting tools to evaluate cutting capability of a machine tool. Continuous flow type chip could be obtained even if the cutting speed was very low due to small diameter of workpiece. However, thorough investigation about machineability in micro/meso cutting is inevitable to assure high quality surface roughness in micro machine tool.