Benefited from the recent development of the high-performance computer and software for finite element analysis, numerical modelling has become one of the efficient tools to help understand cutting mechanism, study tool wear and improve surface quality during machining process. Commonly used material constitutive models are summarized, and analyze several key factors encountered when establishing the cutting simulation model. A systemic introduction of the recent research development involved in chip formation, cutting temperature, cutting forces, tool wear, tool design and residual stress prediction as well as microstructure evolution simulation was addressed. Finally, toward the existing challenges in cutting simulation modeling, the future scope and hot issues needing further study in this field were outlined.