Problem statement: Machines dynamic performance depends not only upon the mechanical structure and components but also the drives and control system. However, the design of the machines is still at the nascent stage by working on an individual machine basis, hence lacks generic scientific approach and design guideline. Approach: Using computer models integrated drives and control system to predict the dynamic performance of ultra-precision machine tools can help manufacturers substantially reduce the lead time and cost of developing new machine. This study proposed a holistic integrated dynamic design and modeling approach, which supports analysis and optimization of the overall machine dynamic performance at the early design stage. The modeling and simulation process on an ultra-precision lathe machine tool is presented using the proposed approach. Results: Model of an ultra precision machine tool is established and used to predict the overall machine performance of the configuration. Deformations of base and fixed sideways in motion are calculated to demonstrate the valid of the method. Conclusion: Excellent accuracy on motion deformation is achieved. The designed and implemented integrated time-domain dynamic analysis and modeling system can predict the static and dynamic performance of ultra-precision machine tools, which can reduce the lead time and the cost of developing new machine.