In all manufacturing industries, tool cost accounts for about 50-55%. So, greater emphasis is given to cutting tool cost and inventing newer tool coatings which significantly increases Tool life. Carbon is abundant and unique element in periodic table. Not only in nano form it is also used in cutting tool industry as CBN, industrial diamond .CBN is artificial diamond and has very high hardness, next only to natural diamond.Reseach is going on how to use carbon nano coatings. Various synthesis techniques as PVD, CVD, CCVD, Laser Ablation etc. are available to deposit carbon nano coatings on substrate. The challenge is yet to develop a mechanism for large scale production of nano tubes. Further the quality of Nano tube obtained is also important. Single walled Nano Tubes (SWCNT) is far more superior to MWCNT as far as their mechanical properties are concerned. But they are purest form of carbon nano tubes and are difficult to obtain. Carbon nano tubes are coiled grapheme tubes which possess a very high aspect (L/D) ratio. These carbon molecules are tiny tubes with diameters down to 0.4 nm, while their lengths can grow up to a million times their diameter. They are very light in weight and their toughness is very high. The carbon nanotube reinforcement of metallic binders for the improvement of quality and efficiency of diamond cutting wheels is being tested. Advantage of superior mechanical properties of the carbon nanotubes, can be taken by using them as fillers in epoxy resins.