The effect of graphene on the performance of Fe-based metal binder diamond abrasive tool was studied by adjusting the graphene content in Fe-Co-Cu-Sn. The microstructure, phase structure, mechanical properties and physical properties of Fe-based metal binder diamond abrasive tool were tested by X-ray diffractometer, scanning electron microscope and universal mechanical testing machine. The results show that the graphene content in binder only affects the content of crystalline phase. When the graphene content is 0.4% (mass fraction), the bending strength of abrasive tool is the highest, being 256.0 MPa, which is 17.4% higher than that of abrasive tool without graphene. With the increase of graphene content, graphene changes from flake like uniform distribution to gradual agglomeration, and the fracture structure changes from brittle fracture to ductile fracture. With the increase of graphene content, the thermal expansion coefficient of abrasive tool gradually decreases and the thermal conductivity gradually increases. The abrasive ratio of abrasive tool increases first and then decreases. When the graphene content is 0.4%, the abrasive ratio is the highest, being 199.8, which is about 21% higher than that of abrasive tool without graphene.