Disclosed in the present application is a sharpening apparatus and method for sharpening a cutting bit. The apparatus comprises a sharpening member and a laser for accurately positioning the cutting bit surface to be sharpened with respect to the sharpening member. The apparatus and method are particularly useful for sharpening a router or shaper bit.Also disclosed is a sharpening apparatus for a cutting bit having a flat face comprising grinding wheel having a shaft and a flat annular grinding surface perpendicular to said shaft; a bit holder adapted to hold said cutting bit and to orient the bit flat face into a plane that is parallel to the plane of the grinding wheel grinding surface; a carriage supporting the bit holder; advancing means for advancing said carriage in a motion parallel to the grinding wheel shaft so that the bit is against the grinding wheel grinding surface; means for side-to-side movement of said carriage in a motion perpendicular to the grinding wheel shaft; said advancing means further comprising a gear train for further advancing the bit flat face against the grinding wheel grinding surface in small increments to remove small layers of material from said bit cutting face during said side-to-side movement.