Diamond micromachining systems based on ultraviolet laser etching and optical sensing of surface morphology will be investigated for precision fabrication of complex structures in diamond and diamond-like carbon. The research addresses demonstration of ablation using a small waveguide excimer laser, investigation of cutting speeds, demonstration of a optical surface height probe, and investigation of techniques for graphite removal. Successful development of such a system would allow the generation of complex shapes in diamond, a material that is extremely difficult to shape because of its high hardness.