Based on the principle of continuous indexing machining of Cycloid Bevel gear, the basic mathematical model of forming process is established. According to the relative movement and position relationship between the tool and the workpiece, the CNC shaping and milling machine of Cycloid Bevel gear is developed. The mathematical model of the machine tool is established, and the calculation formula of the adjustment parameters of the machine tool is derived according to the position equivalence relationship. Based on the electronic gearbox and synchronous programming function of Siemens 828d numerical control system, the NC machining program is developed, and the control of the movement and position of the cutting teeth is realized. The results of cutting experiments, tooth surface detection and rolling inspection in contact area show that the machining accuracy and processing performance of the machine tool can meet the engineering needs.