Abstract: Based on the effects of parameters of compacting and sintering on microstructures and properties of sintered compact of short cast iron fibre.A new kind of diamond grinding wheel bonded by short cast iron fibre was developed.In comparision with high quality diamond grinding wheel bonded by bronze, the new diamond grinding wheel is more suitable for high efficiently grinding hard and brittle materials such as ceramics. When Si₃N₄ engine cylinder was ground, it raised two times in efficiency and five times in grinding ratio.