Nowadays, in the world with a digital control it has become more and faster to use machine tools with simple coded software. This paper presents the design and analysis the mechanical components of base frame of three axis computers numerically controlled (CNC) routing with reduced cost of the machine and to avoid foreign exchange problem that our country faces. It also the CNC lathe for wood machine useful for wood work intersperses to save time cost number of employees in the company and reduces extravagance of raw material. This paper discusses the development of design of CNC lathe for wood machining which designs the mechanical component the router like three different axis lead screw, ball screw, and slider rod and integrates the mechanical component with electronics component is capable of 3-axis simultaneous interpolated operation. The lower cost is achieved by design the mechanical system from locally available materials and the controlling system by incorporating the features of a standard Personal Computer (PC) interface with Arduino micro-controller-based CNC system with stepper motor driver based embedded system. The system also features an offline G-Code interpreter and component parts and then interpreted on the micro-controller in controlling of CNC lathe for wood machining machine. The developed of design of CNC lathe for wood machining is portable horizontally moving gantry machine tool centre Controlled using Personal computer (PC) and it has workspace of 2700x1200x800mm using a precision Stepper motors that combined with ball screw and lead screw help in moving the axis smoothly on sliding, this machine is capable to do an operation like drilling a hole, surface profiling, engraving, etch and intricate profile cutting on woods. Key words: CNC, SMEs