Tool steels in metal forming industry are exposed to complex and aggressive conditions due to multiple effects (mechanical, thermal, or tribological loading) and require defined mechanical properties. Also machining of tool steel with poor machinability like AISI D6 to manufacture form tools is an extremely difficult task. This paper investigates the microstructural, mechanical, and machining behavior of AISI D6 steel in annealed and hardened conditions. Various mechanical tests indicated good hardenability, improved surface hardness, and phenomenal improvement in tensile strength but extremely poor resistance to impact in both annealed and hardened condition for this steel. The machining characteristics of AISI D6 steel were evaluated using a 2k unreplicated full factorial design approach and statistical techniques have been used to assess and identify the significant factors, namely, cutting speed, feed, depth of cut, and approach angle, in minimizing surface roughness and main cutting force while machining this steel with a carbide tool. It was found that the depth of cut, feed, and approach angle are the most significant factors affecting the surface roughness and depth of cut and feed affect the main cutting force. Cutting speed has no effect on surface roughness and main cutting force in machining of the steel in annealed condition.