Machining process simulation and monitoring have been actively researched in the last thirty years. However, technologies developed in these two areas have not really been employed in the industries. Human operators are still the vital factor in any manufacturing processes. Augmented Reality (AR), a recently developed technology that seamlessly combines virtual information and the real environment, has been applied in various applications. AR technology, as a media between the reality, the operator and the digital world, has not yet been applied in the machining field. This paper discusses the possibilities and feasibilities of this fusion. Machining simulation based on a volumetric model is implemented. The system architecture and some implementation results are presented.