The effect of martensitic packet size on the machinability of prehardened mold steel at a hardness of similar to 40 HRC (typical hardness for prehardened mold steels) was studied in terms of cutting force and tool life. The machinability tests were performed in end milling using coated, cemented carbide tools at three different cutting speeds. The results showed that an increase in the martensite packet size led to higher cutting force and shorter tool life. The increase in cutting force was related to the increase of work hardening. The work material with a coarser martensite packet size showed a higher amount of work hardening that can explain the higher cutting force. The longer tool life in the workpieces with finer structure was correlated to smaller amplitude of the variation in cutting force.