Since its development in the 1980 s, chemical vapor deposition (CVD) diamond has found wide application in addressing various engineering challenges, owing to its outstanding characteristics, including exceptionally high hardness, excellent thermal conductivity, and remarkable stability. Notably, processing tools utilizing CVD diamond as the working material exhibit substantial potential for application in the field of mechanical manufacturing. Serving as a viable substitute for natural diamond, CVD diamond processing tools not only offer advantages in production costs but also ensure processing performance on par with natural diamonds. This presents a valuable and effective approach for achieving advanced manufacturing with high precision and low production costs. The research progress of CVD diamond processing tools is comprehensively reviewed from four perspectives, encompassing the CVD process of diamonds, preparation methods, processing applications, and future development directions of CVD diamond processing tools. The classification and exposition of CVD diamond deposition processes were presented. The fabrication of CVD diamond processing tools was elaborated. The machining applications of CVD diamond processing tools were then reviewed, mainly focusing on cutting and grinding processes, along with the tool wear characteristics. Finally, research challenges pertaining to CVD diamond processing tools were summarized, with insights proposed for future development opportunities and the anticipation of enhanced performance for prospective engineering applications.