The potential of carbon nanotube reinforcement of metallic binders for the improvement of quality and efficiency of diamond cutting wheels is studied. The effect of multi-walled carbon nanotube (MWCNT) reinforcement on the mechanical properties i.e. hardness, Young modulus, strength and deformation behavior of copper and iron based binder for diamond cutting wheels is investigated experimentally and numerically. Computational micromechanical studies were carried out to clarify the mechanisms of the MWCNT material strengthening. It is demonstrated that the adding of MWCNTs leads to the decrease of grain size of the structural constituents of the binder, what in turn leads to the improved simultaneously hardness, Young modulus, plastic extension, bending strength and performances of the metallic binders. Comparing service properties of diamond end-cutting drill bits with and without MWCNT one observed the drastic increase of the cutting speed as a result of MWCNT reinforcement.