The present work proposes an innovative method to form microgrooves on a tube internal surface through a new machining mechanism based on the principle of magnetic force for a greater flexibility and lower mechanical constraint. A newly designed machine equipped with a Magnetic Grooving Tool (MGT) was designed and fabricated for this purpose. The tool that consists of a pair of magnets is positioned in the pipe to be pulled by another pairing magnets set at the pipe external side. These four magnets are arranged in sequence of N-S-N-S direction so that it creates a closed magnetic field circuit which has a greater pulling force. By controlling the magnet pair at the pipe’s external side in the linear and rotational direction, the MGT is moved in both directions and simultaneously pulled towards the pipe surface to form the microgrooves. Experiment has been carried out by adjusting the internal and external magnets size combination and its distance to vary the magnetic strengths. The effect of magnetic pull force on the grooving dimension was examined by using an optical microscope and further analyzed using a 3D optical surface profile analyzer. The method was proven to capable of producing microgrooves on the internal surface of the copper pipe. The maximum groove depth of 75.55 μm was recorded by using the magnet size 10x10x40 mm and distance between magnet and workpiece of 2.5 mm.