Abstract: In a combination machining lathe, a workpiece holding device holds a workpiece in a manner that permits the workpiece to rotate around an axis parallel to a direction of a horizontal Z axis. A tool post holds a tool that comprises a holder and a bit. The tool held by the tool post is indexed to a position in which the longitudinal axis of the holder is parallel to an X axis direction. The bit of the tool held by the tool post is angled such that a longitudinal axis of the bit is disposed in a position tilted away from the X axis direction closer to a horizontal axis in a plane containing the X axis and the Y axis. A turning operation is performed while the tool and/or the workpiece are moved relative to each other in a direction of the longitudinal axis of the bit.