Based on the multi-body kinematics principle, the topological structure and restriction relation among parts of machine tool and 3D multi-body model are constructed, the kinematics simulation system of machine tool is developed. The designer can observe the movement and machining course of the whole machine tool and understand accurately the kinematics parameters of components such as position, velocity and acceleration. Also the designer can estimate the pose of components in the virtual circumstance and forecast accurately and correct problems which may appear during the design before the prototype is manufactured to assure the feasibility of design scheme, shorten period of product design and reduce product cost. The simulation system is used during the design of CK1416 high speed and precision numerical control lathe. The curves of ball screw angular velocity and carriage displacement agree well with the results of theoretical calculation and the constructed model is correct.