One of the most crucial mechanical operations for maximizing the use of agricultural waste is the cutting and chopping process. As consequently, a palm waste cutting machine was assessed and then developed to treat for treating processing defects and increase its working performance. The evaluation and development processes were mainly focused on the cutting tool of sharp angle (SA), the clearance (C) (between the shear rod and the cutting roller), the nature of the shear rod, and as well as the life span of the cutting knives. The productivity and cutting efficiency (ηc) of agricultural waste shredder machine (AWSM) increase to highly significant levels when the sharp edge of the knives is lowered to a 25-degree of SA. Additionally reducing the fuel consumption (FC) of cutting machines down to an appropriate level. The best machine productivity and ηc were attained, together with the lowest consumption of fuel, by reducing the C to a minimum of 1 mm. The optimum performance of AWSM was maintained by changing from a fixed to a moving shear rod and a 1 mm of C value. By using a double-edged sharpening instead of a single one, the cutting knives' lifespan was extended. Enhancing the cutting knife's material's mechanical and corrosion-resistant qualities allowed for better sharpening and longer life spans.