The formation mechanism of serrated chip was related to cutting speed. In the range of cutting speed that caused serrate chip, the formation mechanism and optical photomicrographs were different when they obtained at higher or lower cutting speed. The former case, its formation mechanism was the interaction of shear fracture and compression stress on shear zone, and its chip of optical photomicrographs had multi-layer shear sliding line at tooth body or its root part, but there was no shear bend between tooth body. The later case, there were clear shear bend between any two neighbored chip tooth results from adiabatic cutting and chip tearing and re-welding.