Prediction of surface Quality and metal removal rate (MRR) play an important role for proper control of machining parameters during turning operation. The selection of proper cutting tool is considered one of the most factors affecting the quality of machined surface. Therefore, the aim of this work is to investigate the effect of type and coating material of cutting tool on surface roughness and roundness error in turning operation of stainless-steel 304. The experiments were conducted using cutting speed, feed rate, type of tool coating and depth of cut as process parameters. Taguchi orthogonal array L27 and ANOVA were employed to plan and analysis the experimental results. Signal to nose ratios were used to analysis the performance characteristics in turning operation. The results showed that cutting speed is the most significant factor on surface roughness, followed by tool coating. Cutting speed is the most significant factor on metal removal rate followed by depth of cut. Cutting speed is the most significant factor on roundness error followed by the type of tool coating.