The purpose of this study is to acquire design method of machine tools with higher chatter stability. This study focuses on stiffness of main structures and friction damping in a slide of a machine tool, because the stiffness and the friction damping are considered to have major influence on the stability. A 2DOF vibration model of the machine tool with friction damping was developed, and it was applied to the chatter stability analysis. A testing machine was developed and the model parameters were identified. The chatter stability was predicted using the developed model and the identified parameters, while cutting tests were carried out using the developed machine tool to verify the model. The predictions and the experiments were in a good agreement, and therefore it is considered that the model is effective to improve the chatter stability in the machine tool design. For example, the results indicate that higher stiffness does not always lead to higher stability, and that the optimum friction force exists at every stiffness condition.