The miniaturization of many machine parts for machine tools is desired for the purpose of effective utilization of space, energy saving, and realization of desktop factory. To develop a compact and miniaturized NC machine tool, new downsized small parts such as hydraulic parts, pneumatic parts, electric parts and mechanical parts must be developed. These parts are not always satisfied for the practical usage in the present industrial level. Therefore, in spite of many requirements toward the miniaturization of the machine tool from the market, the miniaturized NC machine tool has not been put to practical use. The old-style structure of machine tools is one of the reasons of obstacle to solve this problem. We have proposed a newly developed ultra small size CNC lathe by using the pipe frame structure. The heat transfer between pipe elements and connecting block is affected strongly to the axial displacement. Therefore, the heat transfer between pipes can be insulated by the heat control on the connecting block. The thermal displacement control is realized by using the Peltier devices set on the connecting block. The results on the thermal displacement control of this structure and the effects on the cutting results are reported.