In recent times, the concept of hard turning has gained awareness in metal cutting as it can apparently replace the traditional process cycle of turning, heat treating, and finish grinding for assembly of hard, wear-resistant steel parts. The major apprehension in hard turning is the tool vibration, which affects the surface finish of the work piece, has to be controlled and monitored. In order to control tool vibration in metal cutting, a magnetorheological fluid damper which has received great attention in suppressing tool vibration was developed and used. Also an attempt has been made in this study to monitor tool vibration using the skewness and kurtosis parameters of acoustic emission (AE) signal for the tool holder with and without magnetorheological damper. Cutting experiments were conducted to arrive at a set of operating parameters that can offer better damping characteristics to minimize tool vibration during turning of AISI4340 steel of 46 HRC using hard metal insert with sculptured rake face. From the results, it was observed that the presence of magnetorheological damper during hard turning reduces tool vibration and there exist a strong relationship between tool vibration and acoustic emission (AERMS) signals to monitor tool condition. This work provides momentous understanding on the usage of magnetorheological damper and AE sensor to control and monitor the tool condition during turning of hardened AISI4340 steel.