Abstract: Disclosed is a sprocket cutter in which there is a cutter body having a plurality of pockets along its periphery and a plurality of wedge recesses facing the periphery within each pocket. There is an array of inserts disposed within each of the pockets, each of the inserts having a cutting portion and a plurality of wedges equal in number to the number of inserts and wedge recesses. Each of the wedges is interposed between each of the inserts and each of the wedge recesses so that, as each of the wedges is moved inwardly into its corresponding wedge recess, each of the inserts is securely clamped between its corresponding wedge and the pocket. Each of the inserts is positioned so that the cutting portion of each insert extends beyond the periphery of the cutter body. Each of the inserts cuts a segment of the sprocket contour as the cutter body rotates with adjacent segments of the sprocket contour being cut by inserts located in different pockets. There is also a method of assembling the sprocket cutter.