An increasing consciousness of a responsibility towards the environment together with stricter pollution control requirements demand “green” manufacturing processes. Dry machining will be an important technique in achieving this goal in the future. In this study, investigations are presented on diamond-coated tools and their suitability concerning dry machining an AlSi10Mg-hypoeutectic casting alloy; this alloy is commonly applied for components in the automotive industry. For these investigations, diamond-coated tools were provided from several suppliers. First, the samples were characterized with regard to their film morphology and adhesion. After this, the samples were tested in dry turning and milling operations under normal field test conditions and the results from these tests are discussed with regard to the samples' dry machining behaviour. The investigations showed that optimized diamond-coated tools possess great potential for dry turning and milling operations compared with PCD and K10. Furthermore, the results indicate a consistent qualitative correlation between the properties of the diamond film and the performance in both dry turning and dry milling applications.