A revolutionary "Active Braze Coated Diamond" (ABCD) has been developed for bonding diamond grits firmly in the metal matrix. The molten braze is wetted and reacted with diamond to form strong chemical bond at the interface so that the diamond does not become knocked out of tools. The ABC is a nickel alloy that can form metallurgical diffusion bondswith the metal matrix. In essence, ABCD turns diamond into a metal grain so that the diamond tools can be made by conventional powder metallurgical process without being concerned about the poor bonding between matrix metal powder and the diamond as before.