Today, Computer Numerical Control (CNC) Technology is at leading edge of advanced manufacturing practice. It has also become a building block upon which more complex and ambitious factory automation is based. Therefore at through under-standing of CNC technology is essential prior to the implementation of more advanced forms of manufacturing automation. This thesis describes the development of an integrated CNC system which gives a conventional WASINO profile grinding machine a CNC, adaptive control and DNC capabilities. The CNC consists of Sanyo DENKI digital controller and it's servo components installed on a newly designed worktable forming an indirect closed loop feedbacksystem. Accuracy of the system is the system is achieved by employing precision optical encoders couple with precision ballscrews. Two axes positioning accuracy of less than 5pm. has been recorded. Rapid diminishing of grinding wheel diameter is compensated by a wear monitoring facility which can initiate an automatic dressing cycle. An important component in this function is the super-sensitive wear sensor developed to detect minute change on the wheel profile. This system is capable of detecting a wheel wear in the order of 4pm. By integrating all activities above to a CAD/CAM system called MICROCADAM, product design and grinding can be done automatically. Product geometry created by CAD module of the system is used for generating the NC program based on the postprocessor specifically developed for the CNC system. The complete system is now able to produce commercial parts and it certainly gives a significant impact on SIRIM's effort to promote the development of the machine tool industry in Malaysia.