Abstract: As the EO products are developing, the requirements for the processing accuracy of binary diffractive optical element (DOE) become higher, especially the diffractive efficiency, the profile precision, etc. And shadow effect affects the diffractive efficiency efficiently,which is closely associated with the tool parameters. The single crystal diamond tool for DOE manufacturing was designed, based on the analysis of the relationship between diamond tool and shadow effect, surface roughness, wear resistance. According to the turning experiment, the results indicate that the designed single signal crystal diamond tool satisfies the demand for processing DOE, and the wear resistance improves by two times than before strengthened.