A multi-functional grinding apparatus includes a fixed barrel, a moving barrel, a cutting device, a grinding plate, and an actuator. The fixed barrel defines a chamber therein and includes a number of inner side surfaces, the inner side surfaces are substantially parallel to a central axis of the fixed barrel. Each of the inner side surfaces defines a holding groove therein for holding a workpiece. The moving barrel is received in the chamber and includes a first side surface and a second side surface, the first side surface and second side surface are substantially parallel to the central axis. The cutting device is fixed on the first side surface. The grinding plate is fixed on the second side surface. The actuator is configured for driving the moving barrel to move towards a workpiece, and rotating the moving barrel.