Abstract: A machine tool has a hollow drive spindle with a work holder attached thereto for holding work submerged in a machine liquid, such as mineral oil, contained in a machining chamber. The work is machined in the submerged state as a cutting tool is fed against the work rotating with the drive spindle. The machining liquid is additonally utilized for hydrodynamically loading the work on the work holder by drawing the liquid from the machining chamber into the hollow in the drive spindle, and for unloading the completed product from the work holder by forcing the liquid back into the machining chamber through the hollow in the drive spindle. A removable chip recovery vessel is provided for the recovery of the metal chips and particles from the machining liquid by recirculating it through the vessel. The machine tool can take various other arrangements for the performance of a variety of cutting operations.