According to the theory and machining principle with disc milling cutter of the equal-base circle bevel gear, the mathematical model of disc milling cutter is established, the principle of machining equal-base circle bevel gear with disc milling cutter is analyzed, and the design methods of axial section profile and the parameters of disc milling cutter are studied, respectively. The reason of interference between the disc milling cutter and tooth surface during machining is studied, based on the tool motion analysis. According to the coordinate change of cutter axial section in the cutter rotation movement and the corresponding rule of coordinate between the cutter surface point and the corresponding point on tooth surface, the internal interference mechanism is analyzed. For the overcut interference in machining movement, a judgment method is proposed based on the rotation and comparison of cutter axial profile coordinates. Finally, through the processing experiment, the reasonable selection method of design parameters and the validity of judgment method are verified.