Diamond coated cutting tools are the new generation tools and play significant roles in efficient dry machining of non-ferrous materials. This is replaced by all conventional uncoated and coated tools. This leads to reduction of heavy material built-up at cutting edge and decreases cutting force and increases surface finish on the workpiece. The important step in the growth of CVD diamond coating is nucleation. The process parameters such as substrate pretreatment, seeding materials affect nucleation, growth, morphology and purity of CVD diamond coating leading to adhesion to the cutting tool. The present investigation was directed to conduct a systematic study on the effect of process parameters on the coating characteristics. A detailed study on the effect of deposition pressure on nucleation and growth of diamond coating on as-received, pretreated substrates and substrates seeded with diamond were prepared. This is evaluated by adhesion test and machining tests. The improved performance of the diamond coated carbide tool relative to uncoated carbide tool during dry machining of aluminum was also established through reduction of cutting force and surface roughness of work-piece.