A workpiece ejector has an air actuator mounted within a lathe spindle for rotation therewith. The ejector actuator is controlled to extend its piston and piston rod to eject a workpiece from the lathe collet. A removable ejector nosepiece may be connected to the piston rod for movement into engagement with a workpiece held in the collet mechanism. Air under pressure is supplied to the air actuator at a first pressure to continuously press the nosepiece against the workpiece to seal the spindle assembly from contaminants, and at a second pressure to eject the workpiece. Controls are provide to sense whether a workpiece was properly ejected and to interrupt lathe operations if a workpiece was not properly ejected.