Currently, with the rapid improvement of CAD design technology, the design cycle and production cycle became shorter and shorter. Therefore, it is highly demanded to develop the dexterous machining tools, which are suitable for measuring and machining of small parts with complex shapes. In this research, a compact desktop machine tool with polar-coordinate is proposed. Based on its polar-coordinate configuration, two rotational axes and one linear axis, it provides a higher flexibility than the traditional 3-axis machine tools. By using a hotwire cutter as the cutting tools, it could rapidly machine a fine product from a CAD model. Furthermore, by changing the tools into a touch probe sensor, it could also precisely measure the shape of a 3D object. With the versatile CAD/CAM software, which was specially designed for this Polar-coordinate desktop machine tool (PDMT), this system could fulfill various tasks, such as measurement of 3D objects, reconstruction of 3D models, machining of 3D parts, and even duplication of 3D products.