Surface-set diamond tools were fabricated by an active metal brazing process, using bronze (Cu-8.9Sn) powder and 316L stainless steel powder mixed to various ratios as the braze filler metals. The diamond grits were brazed onto a steel substrate at 1050 degrees C for 30 min in a dry hydrogen atmosphere. After brazing practice, an intermediate layer rich in chromium formed between the braze filler metal and diamond. A braze filler metal composed of 70 wt% bronze powder and 30 wt% stainless steel powder was found to be optimum in that the diamond grits were strongly impregnated in the filler metal by both mechanical and chemical types of holding. The diamond tools thus fabricated performed better than conventional nickel-plated diamond tools. In service, the braze filler metal wore at almost the same rate as the diamond grits, and no pullout of diamond grits or peeling of the filler metal layer took place.