Machining is an integral and indispensable part of production technology with cutting tool playing key roles in its operations. This work therefore developed cutting tool from scrapped crank shaft, connecting rod, alloy additives and palm kernel shell. These materials were chosen due to their hardness and availability. The scrapped crankshaft and rod (100 kg) containing 0.560 % carbon were charged into electric induction furnace with maximum temperature 3000oC. The composition of the charged materials was analyzed with the UV-VIS spectrometer before and after melting. In order to raise the carbon content of the melt to 0.65% target (HSS) and upgrade relevant elements, alloy additives were added. Annealing was the first treatment carried out in muffle treatment furnace at temperature at 900oC for 9 hrs then cooled to 300oC. The annealed materials were machined into 20 pieces of long (199 x 12 x 12 mm) and short (20x 12 x12 mm) sizes. Further treatments of hardening, normalizing and tempering were also carried out on the cutting tools. The tools were then carburized with pulverized carbon using 20 % Barium trioxocarbonate (V) as an energizer in a muffle treatment furnace. Each of the samples was soaked at temperature of 800oC, 850oC, 900oC and 950oC for 60, 90 and 120 minutes holding time. Micro-hardness and surface hardness of the tool were 47.9 and 76.8HR, while for control sample were 46.1 and 76.3HR respectively.