The main goal of this development is the PC-based controller setup on the CM2 tool grinding machine. Concerned cutting parameters with know-hows can be transferred to a useful program and then embedded in the PC-based controller. By automatic positioning of probes the automatic procedure can be achieved. An automatic and intelligent PC-based grinding machine for regrinding has been developed in this investigation. With the new machine and automatic procedure, regrinding process will be distinctly simplified. Based on a manual grinding machine CM2, a PC-based controller is integrated in the machine. The know-hows of the regrinding technology have been integrated with a self-developed program. For automatic dimensional inspection a contact probe is utilized as inspection sensor. By the programming and automatic dimensional inspection, the functions of tool regrinding machine have been enhanced greatly.