Cutter design and multi-objective optimization of machine for cable peeling is proposed to use mechanical peeling instead of manual peeling in this paper. First, the design of the machine for cable peeling includes executive mechanism, driving part for cable, driving part for executive mechanism, and peeling mechanism. Then, the cutting experiment platform is set up to verify the actual effect of cutting, and different cutting depths, cutting speeds and fixing cables methods are discussed by the cutting experiment platform. A numerical simulation method is proposed, and different cutting methods, cutting depths and cutting speeds for cutting different materials are discussed by simulation method. The results show that simultaneous cutting is better than sequential cutting. The results show a good agreement between the results obtained from the finite element modelling and experimental investigations. A theoretical reference is provided for subsequent structural improvement. Finally, multi-objective optimization of machine for cable peeling is realized. The aim of the optimization was improving the dimensional accuracy after cutting and reducing the deformation of the cut surface. Cutter thickness, cutter angle, and cutter material are used as optimization variables, and the final optimal solution is obtained. The cutter is manufactured according to the final optimal solution, experiment of cutting is performed, and good agreements were achieved between optimal solution and experiments. Comparing the final results with the initial results shows a significant improvement.