The same properties that qualify tool steels for tools and dies are also used for other parts that require resistance to wear, stability during heat treatment, strength at high temperatures, or toughness. Tool steels are increasingly being used for mechanical parts to reduce size or weight, or to resist wear or high-temperature shock.

Tool steels are metallurgically "clean," high-alloy steels that are melted in relatively small heats in electric furnaces and produced with careful attention to homogeneity. They can be further refined by argon/oxygen decarburization (AOD), vacuum methods, or electroslag refining (ESR). As a result, tool steels are often specified for critical high-strength or wear-resistant applications. Because of their high alloy content, tool steels must be rolled or forged with care to produce satisfactory bar products.

To develop their best properties, tool steels are always heat treated. Because the parts may distort during heat treatment, precision parts should be semifinished, heat treated, then finished. Severe distortion is most likely to occur during liquid quenching, so an alloy should be selected that provides the needed mechanical properties with the least severe quench.

Tool steels are classified into several broad groups, some of which are further divided into subgroups according to alloy composition, hardenability, or mechanical similarities.