Elliptical vibration cutting (EVC) technology has been paid much attention as the unique characteristics of the intermittent cutting and friction reversal, but the residual-height between adjacent trajectories can not be eliminated. In order to solve the problem, we developed a new vibration assisted rotation cutting (VARC) system in this paper. The system has the characteristics of the pseudo-intermittent cutting and friction reversal, which greatly extends the tool-life, reduces cutting forces, and improves the accuracy of the work-piece. The mechanical system based on the parallel kinematic configuration of the two-axis, where the positioning of the tool position has ensured by the rotary motion platform (RMP). The L-shaped flexure hinges are used as the guidance flexure mechanism, to rotate of the RMP. Flexures hinge structure and piezoelectrically actuated are employed positioning in the design. The kinematic analysis of the pseudo-rigid-body model, the matrix-based compliance modeling method is applied for the compliance modeling, and the dynamics characteristic is modeled by using the Lagrangian principle of VARC system. The structural parameters are optimized by the improved differential evolution algorithm, and the theoretical modeling is validated by finite element analysis. Off-machine performance examinations were conducted to evaluate the parasitic motions, resolution, hysteresis, stroke, and frequency of the developed system. The results showed that the motion stroke of the piezoelectric actuator input end could reach up to 26.34 μm with a resolution of 8 nm, moreover, the coupling ration could be effectively decreased within 0.64%. The superior performances and easily achievable structure well facilitate practical applications of the proposed system in micro/nano-machining.