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Aiming at operational reliability analysis and assessment based on condition monitoring information in this paper, a methodology of reliability modeling and assessment based on cutting tool vibration signal feature extraction using proportional hazards model is proposed. Root Mean Square and Peak of time domain index from vibration signals, which are closely related to tool wear degradation states, are selected as covariates introduced to proportional hazards model for the tool wear reliability analysis. The proposed approach shows a considerable advantage of establishing significant association relationship between the tool condition monitoring information and the life distribution of tool wear. It is appropriate to provide individual cutting tool operational reliability assessment effectively. The experimental study on the CNC lathe turning process is given to validate the effectiveness of the proposed method. The results have shown that the approach are promising and give good estimation ability of reliability for tool wear degradation states.