A machine tool with lathe tool and milling cutter includes a machine support, a worktable, a moving device, a lathe feeding mechanism and a milling feeding mechanism. The worktable is positioned on the machine support. The moving device is slidably assembled to the machine support along a first direction and located above the worktable. The lathe feeding mechanism and the milling feeding mechanism are slidably assembled to the moving device along a second direction perpendicular to the first direction. The lathe feeding mechanism includes a feeding assembly and a lathe tool connected to the feeding assembly. The feeding assembly is configured for driving the lathe tool to move along a third direction substantially perpendicular to the first and second direction reciprocally, the milling feeding mechanism includes a milling cutter and is configured for driving the milling cutter to move along the third direction.