Nowadays the market for diamond tools grows rapidly. The present decline in the price of industrial diamond makes it a commoditised product capable of competing with conventional abrasives. In terms of production volume, the largest group of diamond tools comprises the metal-bonded diamond impregnated tools, such as sawblades, wire saws, and core drills for cutting stone and construction materials, and core bits for mining applications. This article provides a compendious coverage of the powder metallurgy (PM) diamond tool-making routes, and identifies the recent trends towards changing the tool design and composition to render it cheaper and more efficient.