Nano technology is a new technology and begun in 1980's. The paper firstly overviews the development of cermet cutter and its general situation in research, and then introduces the inherent properties owned by nano-technology and nano-material. In the end the nano-TiN modified TiC-based cermet cutter is fabricated and the mechanical properties of the developed cutter are also tested and analyzed. In order to study nano-modification effect, both nano-modified cermet and general cermet have been made. The mechanical properties of two kinds of materials are also measured. By comparing the measured datum, it has been indicated that the nano-modified cermet has better mechanical properties and the nano-modification technology is effective. This presents a new way to increase the toughness of cermet cutter.