A method of manufacturing an outer blade cutting wheel comprising a base in the form of an annular thin disc of cemented carbide having an outer periphery and a blade section formed on the outer periphery of the base, said method comprising the steps of: clamping the base between circular jigs of outer diameter larger than the base so that a space is defined between outer peripheral portions of the jigs; filling abrasive grains, previously coated with a magnetic material, in the space and holding the abrasive grains in the space by the attraction of permanent magnets attached to the jigs; effecting electroplating on the base having the abrasive grains retained on its outer periphery, in a plating bath using an electrode which is spaced out from and encloses the outer circumference of the blade section, to deposit a metal or alloy to bond the abrasive grains to each other and to the base, thereby forming an abrasive layer composed of the abrasive grains and the metal or alloy, the abrasive layer constituting said blade section; tailoring the protrusion, thickness and outer diameter of the abrasive layer by wire electrical discharge machining and/or by a grinding wheel, and dressing the cutting wheel, by clamping the cutting wheel between a further pair of circular jigs to hold the cutting wheel, said further jigs having smaller outer diameter than the cutting wheel such that the jigs cover the opposed surfaces of the cutting wheel over a predetermined range and the blade section projects beyond the outer edge of the jigs, immersing the cutting wheel clamped between the jigs in an electropolishing liquid in an electropolishing tank, using the plating bath from the electroplating step as electropolishing liquid; providing, as counter electrodes, said electrode used in the electroplating which is spaced out from and encloses the outer circumference of the blade section, and electrodes (5,6) opposed to and spaced apart from the opposite side surfaces of the blade section, and conducting electricity between the cutting wheel and the counter electrodes (4,5,6) to electrolytically dissolve away part of the metal or alloy between abrasive grains until abrasive grains are exposed partially raised from the blade section surface. clamping the base between circular jigs of outer diameter larger than the base so that a space is defined between outer peripheral portions of the jigs; filling abrasive grains, previously coated with a magnetic material, in the space and holding the abrasive grains in the space by the attraction of permanent magnets attached to the jigs; effecting electroplating on the base having the abrasive grains retained on its outer periphery, in a plating bath using an electrode which is spaced out from and encloses the outer circumference of the blade section, to deposit a metal or alloy to bond the abrasive grains to each other and to the base, thereby forming an abrasive layer composed of the abrasive grains and the metal or alloy, the abrasive layer constituting said blade section; tailoring the protrusion, thickness and outer diameter of the abrasive layer by wire electrical discharge machining and/or by a grinding wheel, and dressing the cutting wheel, by clamping the cutting wheel between a further pair of circular jigs to hold the cutting wheel, said further jigs having smaller outer diameter than the cutting wheel such that the jigs cover the opposed surfaces of the cutting wheel over a predetermined range and the blade section projects beyond the outer edge of the jigs, immersing the cutting wheel clamped between the jigs in an electropolishing liquid in an electropolishing tank, using the plating bath from the electroplating step as electropolishing liquid; providing, as counter electrodes, said electrode used in the electroplating which is spaced out from and encloses the outer circumference of the blade section, and electrodes (5,6) opposed to and spaced apart from the opposite side surfaces of the blade section, and conducting electricity between the cutting wheel and the counter electrodes (4,5,6) to electrolytically dissolve away part of the metal or alloy between abrasive grains until abrasive grains are exposed partially raised from the blade section surface.