This paper has a two-fold purpose. The first is to present the development and design of control criteria used for a two-dimensional actively controlled toolpost, whilst the second is to develop a theoretical simulation program to assess the relationships between the controller parameters and the toolholder stiffness. The control scheme provides suitable commands to the actuators to abate vibrations produced at the interface between the tool tip and the workpiece. The toolpost with the proposed controller is used on a Nakamura Tome lathe to machine aluminum samples. A comprehensive series of tests involving machining stock at constant cutting rates for a range of depths of cut and axial feed rates is conducted and demonstrates the effectiveness of the scheme in providing suitable corrective signals to abate vibrations. The results reveal good operation criteria based on setting the controller parameters for better controller performance. However, the theoretical simulation has demonstrated that a PI controller can produce a sufficient control action, which results in a smoother surface. It indicates that a stiffer structure requires larger integral action in order to produce a smoother surface of the workpiece.