The paper concerns application of DPSS Nd: YAG 532nm pulse laser source for machining of polycrystalline WC based diamond inserts (PCD). The goal of the research was to determine optimal laser cutting parameters for cutting tool shaping. Basic criteria to reach the goal was cutting edge quality (minimalization of finishing operations), material removal rate (time and cost efficiency), choice of laser beam characteristics (polarization, power, focused beam diameter). The research was planned and realised and analysed according to design of experiment rules (DOE). The analysis of the cutting edge was prepared with use of Alicona Infinite Focus measurement system. [ABSTRACT FROM AUTHOR]