Materials often behave in a complicated manner involving deeply coupled effects among stress/stain, temperature, and microstructure during a machining process. This paper is concerned with prediction of the phase change effect on orthogonal cutting of American Iron and Steel Institute (AISI) 1045 steel based on a true metallo-thermomechanical coupled analysis. A metallo-thermomechanical coupled material model is developed and a finite element model (FEM) is used to solve the evolution of phase constituents, cutting temperature, chip morphology, and cutting force simultaneously using abaqus . The model validity is assessed using the experimental data for orthogonal cutting of AISI 1045 steel under various conditions, with cutting speeds ranging from 198 to 879 m/min, feeds from 0.1 to 0.3 mm, and tool rake angles from −7 deg to 5 deg. A good agreement is achieved in chip formation, cutting force, and cutting temperature between the model predictions and the experimental data.