By adopting an equivalent geometry model of machining process and considering thermo-plastic properties of the work material, a finite element method(FEM) to study oblique milling process of aluminum alloy with a double-edge tool was presented. In the FEM, shear flow stress was determined by material test. Re-meshing technology was used to represent chip separation process. Comparing the predicted cutting forces with the measured forces shows the 3D FEM is reasonable. Using this FEM, chip forming process and temperature distribution were predicted. Chips obtained by the 3D FEM are in spiral shape and are similar to the experimental ones. Distribution and change trend of temperature in the tool and chip indicate that contact length between tool rake face and chip is extending as tool moving forward. These results confirm the capability of FEM simulation in predicting chip flow and selecting optimal tool.