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If a touch probe is your machine’s “sense of touch” for the part, a tool setter is the machine’s “sense of touch (or sight)” for the tool.
A tool setter (also called an on-machine tool measuring system, tool touch probe, or tool presetter) is a device installed inside a CNC machine that measures cutting tool geometry—primarily length (Z) and often diameter/radius (X/Y) and then updates tool offsets automatically. Many tool setters also support broken tool detection and tool-condition checks so the machine can stop, alarm, or switch to a sister tool before scrap happens.