Abstract: A threaded hole (20) in a workpiece (22) is formed by rapidly spinning an elongated tool (24) having a drill point (64) at one end, at least one longitudinally extending flute (80) having thread milling faces (84) for milling the thread to be formed, and wherein the tool (24) is first moved axially to carry the drill point (64) against and into the workpiece (22) to form a hole (66), then is displaced radially a distance equal to the thread depth to be formed, then is moved orbitally around the hole (66) to mill threads therein, then is displaced back to the center of the hole (20) and then is retracted from the hole (20). To form a helical thread in the hole (20), the tool (24) is shifted axially one thread pitch during the orbital movement. A thread milling drill head (26) is disclosed for chucking the tool (24) and shifting it through the aforesaid movements.