Powder metallurgy (PM) is a manufacturing technique that employs metal powder as the raw material, which is then molded and sintered to produce various products. PM green compacts are inherently weak, rendering them prone to damage during machining due to cutting forces, which also affect the quality of the machined surface. To study the impact of different machining variables on cutting force, a finite element simulation (FEM) was employed, focusing on cutting thickness, cutting speed, tool rake angle, and rounded edge radius. The results indicated that cutting thickness had a highly significant impact on cutting force, while the rounded-edge radius and cutting speed were also significant factors. The tool rake angle was found to have minimal effects. The optimal parameters for minimizing cutting force were identified: a cutting thickness of 0.20 mm, a cutting speed of 120 m/min, a tool rake angle of 0°, and a rounded-edge radius of 40 μm, which reduced the cutting force to 887.95 N.