A method for drilling holes in engineering ceramics by using a diamond tool has been developed. In this method, a drilling tool rotates with fixed abrasives. The machining mechanism of drilling based on the fracture mechanics concept is analyzed, and a new theoretical model of the material removal rate is proposed. According to this model, the material removal rate increases in accordance with the increase of the static load applied, the rotational speed of the drilling tool, and the grain size of the abrasive. Selecting 99.5% Al2O3 ceramics as the workpiece material, experiments have been carried out. The results show that diamond drilling is an effective method for machining engineering ceramics.