Although process damping has a strong effect on cutting dynamics and stability, it has been mostly ignored in chatter analysis as there is no practical model for estimation of the damping coefficient and very limited data are available. This is mainly because of the fact that complicated test setups were used in order to measure the damping force in the past. In this study, a practical identification and modeling method for the process damping is presented. In this approach, the process damping is identified directly from the chatter tests using experimental and analytical stability limits. Once the process damping coefficient is identified, it is related to the instantaneous indentation volume by a coefficient which can be used for different cutting conditions and tool geometries. In determining the indentation coefficient, chatter test results, energy, and tool indentation geometry analyses are used. The determined coefficients are then used for the stability limit and process damping prediction in different cases, and verified using time-domain simulations and experimental results. The presented method can be used to determine chatter-free cutting depths under the influence of process damping for increased productivity.