The machining of cellular metals has been a challenge, as the resulting surface is extremely irregular, with torn off or smeared material, poor accuracy, and subsurface damage. Although cutting experiments have been carried out on cellular materials to study the influence of cutting parameters, current analytical and experimental techniques are not suitable for the analysis of heterogeneous materials. On the other hand, the finite element (FE) method has been proven a useful resource in the analysis of heterogeneous materials, such as cellular materials, metal foams, and composites. In this study, a two-dimensional finite element model of peripheral milling for cellular metals is presented. The model considers the kinematics of peripheral milling, depicting the advance of the tool into the workpiece and the interaction between the cutting edge and the mesostructure. The model is able to simulate chip separation as well as the surface and subsurface damage on the machined surface. Although the calculated average cutting force is not accurate, the model provides a reasonable estimation of maximum cutting force. The influences of mesostructure on cutting processes are highlighted and the effects in peripheral milling of cellular materials are discussed.