In this study, the effects of the cutting tool forms and cutting parameters on the surface integrity were experimentally investigated in machining of AISI 316L steel. In cutting tests, PVD coated MM and MF formed cutting tools and tool holder suitable for these cutting tools were used. Cutting parameters were determined by using three different feed rate, four different cutting speeds and two different depths of cut. The surface integrity was evaluated in terms of surface roughness, residual stress, microhardness and microstructure analysis. In all cutting conditions, it was observed that the surface integrity worsened when the depth of cut and feed rate increased, whereas the surface integrity improved when the cutting speed increased. When the cutting tool forms were compared, the best surface integrity results were obtained with the cutting tools which had MF form, while the worst surface integrity results were obtained by the cutting tools which had MM form. As rake angle increased, surface integrity improved. The worst surface integrity was obtained with the cutting speed 125 m/min, feed rate 0.3 mm/rev and depth of cut 2.5 mm, while the best surface integrity was obtained with the cutting speed 200 m/min, feed rate 0.1 mm/rev and depth of cut 1.25 mm.