Tool wear is a major contributor to machining errors of a work piece. Tool wear prediction is an effective way to estimate the wear loss in precision machining. The state of a cutting tool is an important factor in any metal cutting process as additional costs in terms of scrapped components, machine tool breakage and unscheduled downtime result from worn tool usage. Several methods to develop monitoring devices for observing the wear levels on the cutting tool on-line while engaged in cutting have been attempted. Tool wear of a cutting tool has a significant impact on the tool life and surface quality of the finished product. Tool wear is influenced by many factors such as cutting parameters, tool geometry, coating type, work piece material, chatter, and cutting condition. In this project, we have tried to find  a solution for the problem of breaking or worn out of honning stick by providing cylindrical inductive proximity sensor for getting continuous precise product flow.