This paper describes the design of a vertical 3-axis milling machine. In the suggested design the milling machine handles movements along the X- and Y-axis with the movement of a workpiece and utilizes tool to handle the movement along the Z-axis. The paper delivers an explanation of basic machine tool concepts, characteristics, and tasks of modern machine tools. It describes the movements of the milling machine, concepts used in further work, milling operation itself and the types of milling tools. This is followed by defining the requirements, i.e. the main characteristics that the designed milling machine must possess. The construction process begins with the calculation of the main spindle drive and determining the expected cutting forces. Facing operation with a large diameter milling cutter was employed to determine the milling forces. This ensures that the selected spindle motor is able to perform operations that require a smaller diameter cutter. This was followed by performing calculations required for the selection of linear guideways. Since the correct selection of linear guides is necessary for the proper functioning of the machine, the calculations were performed following the manufacturer's recommendations. The construction of the milling machine was continued by performing calculations necessary for the selection of the ball screw and the ball nut. Ball screw with a 5 mm pitch and a relatively high accuracy class for the requested price were selected. AC servomotors have been selected to drive all numerically controlled axes. The availability and price of such motors and their regulators play a key role in their selection. As employing more powerful motors does not represent a significant increase in price compared to employing weaker, i.e. more ideal power engines, relatively too powerful engines were chosen for the drive. The conceptual design solution was constructed in the "Solidworks" software package and full technical documentation was provided.