For the truing and dressing bronze-bonded diamond grinding wheel by acoustic-optic Q-switched YAG pulsed laser, a three-dimensional (3D) mathematical simulation model and a heat transfer model of single pulsed laser ablating the diamond abrasive are established by ANSYS finite element software. The models show the temperature distribution of diamond under different laser parameters, and they are proved to be correct through experiments. According to the two different procedures of dressing and shaping of bronze-bonded diamond grinding wheels, from both experiment and numerical simulation much research work is done on the relationship of pulsed laser parameters and the depth of carbonized layer. The results show that there is not much difference between the influences of pulse width and laser power on the depth of carbonized layer in dressing, but pulse width plays a dominant role on the depth of carbonized layer in shaping; and the depth of carbonized layer will decrease after multi-pulse ablation; only in dressing will the depth of carbonized layer decrease with the increase of pulse width.