The demand for high precision products with functional surfaces has increased in recent years. This report describes new milling systems with a tool spindle that can realize fine radial or axial motion. A tool spindle developed has voice coil motor-driven units for exciting a spindle head based on NRRO sensor signals to reduce error motion in the radial directions. Another developed spindle has a giant magnetostrictive element inside a tool shank to drive an end mill tool axially during rotation. The developed spindle systems realized high precision and micro-milling processes.