This paper focuses on the development of a distributed surface machining system. Traditional manufacturing engineering activity analysis has been conducted in developing the proposed system structure. The advantages of a distributed system structure such as easy to manage, high expandability and flexibility will enhance the efficiency of an integral system operation, and achieve the goal of networked manufacture. The IDEF0 was used to describe each stage of the traditional surface machining activities, and then UML (Unified Modeling Language) technology was adopted to verify the feasibility and accuracy of the established integrated system. The developed distributed system structure and sub-functional modules (CAD/CAM/CAPP) have been implemented based on the proposed systematic approach; and a freeform surface has been used as an example for verification. The proposed approach has been successfully implemented and could be adopted to assist engineers in integrating machining activities that are located in dispersed places; and various domains experts also can exchange their expertise among themselves. Thus, the development time of a product machining processes can be shortened and so is its enhancement on the competitive advantages. In addition, this distributed system has also integrated multi-functional ontology and service agent to facilitate the selection and reconfiguration in manufacturing customization.The proposed system has presented the feasibility in incorporating the agent-based technology in a distributed freeform surface machining environment. Service agents communicate via pre-defined performatives underlying knowledge query and manipulation language (KQML) for the surface machining capability. The developed system has then successfully demonstrated the feasibility in implementing the agent-based technology into a distributed surface machining system.