Chain saw machines are used for cutting vertical or horizontal cuts in underground and surface exploitation of dimension stone. Efficiency of a chain saw can be expressed through cutting rate, consumption of cutting tools and energy consumption. Cutting performance of a chain saw is mainly dependent on machine design, physico-mechanical properties of rock mass, operational parameters and tool wear rate. The operational parameters which the operator must arrange on a chain saw are chain speed and cart speed movement. Operational parameters are based on manufacturer's recommendations and/or the operator experience. The main objective of this research is to analyze the relationship between operational parameters, chain design and chainsaw performance. The major hypothesis of this study was that cutting action of chain saw machines can be successfully simulated by linear rock cutting test. For this purpose in this work small-scale and full-scale rock cutting experiments were performed. The operational parameters of chain saw are studied by performing full-scale field studies on chain saw. A portable data acquisition system, using a laptop computer, was developed to monitor cutting energy of chain saw. Specific energy was calculated as the amount of energy required to cut a unit volume of rock. The second hypothesis stated that the operational and constructional parameters can be optimized based on experimental studies of linear cutting test. The constructional parameters of cutting chain are studied by performing small scale tests on laboratory rock cutting machine. The Linear cutting machine is a modified shaping machine equipped with a triaxial dynamometer attached to the cutter head. The dynamometer resolves the instantaneous force on a cutting tool into three mutually orthogonal components, each measured by a straingauged bridge circuit. Linear cutting test were carried out with the sequence of cutting patterns same as on chain saw. The specific cutting energy, which represents the energy required to remove a unit volume of work-material, is calculated from the cutting force, length of cut and volume of cut rock. The major hypothesis was tested by comparing the specific cutting energy obtained from laboratory test and field measurement. Thus, linear cutting machine test can be used not only for measurement of cutter forces, but also to select the most suitable cutter in order to achieve the most efficient cutting. This means different cutter geometry design with different chain patterns. The experimental results based on statistical analysis show that the specific energy of material is reduced considerably as depth of cut increases. The depth of cutting is affected by transverse speed of chain saw and the chain speed. It can be increased by increasing transverse speed or decreasing speed of chain. Maximum transverse speed of chain saw is limited due the forces acting on a chain. Minimum chain speed depends on volume of loose cuttings. In this work, model for estimating minimum chain speed and cutting forces acting on the cutting bar has been developed. The paper also presents suggestions for improving design of the cutting chain.