The failure analysis of several kinds of sharp cutter was carried out by optical and scanning electronic microscopes. The wear mechanisms of the cutting edge and cutting face were investigated respectively. The results show that carbides with a certain amount and special morphology in cutting face, strongly combined with the matrix, would increase the ability to scratching-resistance. However, both coarse carbides and banded carbides in cutting edge easily lead to edge break. Accordingly two new heat treatment processes for improving the distribution and morphology of carbides were introduced.