Isotropic pyrolyric graphite (IPG) is a new kind of brittle material, it can be used for sealing the aero-engine turbine shaft and the ethylene high-temperature equipment. It not only has the general advantages of ordinal carbonaceous materials such as high temperature resistance, lubrication and abrasion resistance, but also has the advantages of impermeability and machinability that carbon/carbon composite doesn't have. Therefore, it has broad prospects for development. Mechanism of brittle-ductile transition of IPG is the foundation of precision cutting while the plastic deformation of IPG is the essential and the most important mechanical behavior of precision cutting. Using the theory of strain gradient, the mechanism of this material removal during the precision cutting is analyzed. The critical cutting thickness of IPG is calculated for the first time. Furthermore, the cutting process parameters such as cutting depth, feed rate which corresponding to the scale of brittle-ductile transition deformation of IPG are calculated. In the end, based on the theory of micromechanics, the deformation behaviors of IPG such as brittle fracture, plastic deformation and mutual transformation process are all simulated under the Sih.G.C fracture criterion. The condition of the simulation is that the material under the pressure-shear loading conditions .The result shows that the best angle during the IPG precision cutting is -30°. The theoretical analysis and the simulation result are validated by precision cutting experiments.© (2010) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.