Miniaturized devices are the key producing next-generation microelectro-mechanical products. The applications extend to many fields that demand high-level tolerances from microproducts and component functional and structural integrity. Silicon-based products are limited because silicon is brittle. Products can be made from other engineering materials and need to be machined in microscale. This research deals with predicting microtool failure by studying spindle runout and tool deflection effects on the tool, and by measuring the cutting force that would fail the tool during microend-milling. End-milling was performed using a tungsten carbide (Ø1.016 mm dia., 2 flute) tool on SS-316L material. Tool runout measured using a laser was found to be less than 1 µm and tool deflection at 25000 rpm was 20 µm. Finite element analysis (FEA) predicts tool failure due to static bending for a deflection greater than 99% of tool diameter. Threshold values of chipload and cutting force resulting in tool failure were found using workdone by tool. Threshold values to predict tool failure were suggested for axial depth of cut in between 17.25% - 34.5% of cutter length. For a chipload greater than 20% of cutter diameter, the microtool fails instantly for any radial depth of cut.