Manufacturing steam turbine blades with intricate shapes poses a substantial challenge. These blades significantly impact turbine efficiency, reliability, and productivity. Their precise formation through milling processes demands vigilant monitoring, especially concerning the cutting tool’s condition, which is responsible for shaping the blade profiles and ensuring high-quality outcomes. Direct tool monitoring, however, disrupts productivity, prompting the need for an indirect Tool Condition Monitoring (TCM) system. Such a system becomes essential for detecting tool wear and damage early, ensuring dimensional accuracy and surface smoothness. This experiment monitors tool conditions by analyzing vibrations generated by an endmill cutter while machining martensitic stainless steel (MSS) AISI 420. The setup employs a cost-effective MEMS vibration sensor, the ADXL 345, and Raspberry Pi for real-time online TCM functionality as the signal processor. This study delves into the sensor’s ability to capture vibrations representing actual tool conditions, focusing on the affordability and effectiveness of MEMS-based monitoring. The successful real-time implementation of MEMS-based monitoring could be an easily accessible gateway for manufacturing industries to embrace cloud-based monitoring systems, aligning with current technological trends. This research aims to underscore the viability and potential adoption of affordable MEMS sensors for comprehensive tool condition monitoring, offering a seamless transition toward cloud-integrated monitoring systems for manufacturing industries.