Finding an optimum process window to avoid vibrations during machining is of great importance; especially when manufacturing parts with high accuracy and/or high productivity demands. In order to make more accurate predictions of the dynamic modal properties of a machining system in use, a non-contact method of measuring vibrations in the rotating spindle is required. Laser Doppler Vibrometry (LDV) is a non-contact method, which is commonly used for vibration measurements. The work presented consists of an investigation into the use of LDV to measure vibrations of a rotating tool in a milling machine, and the effects of speckle noise on measurement quality. The work demonstrates how the axial misalignment and the roundness of a polished shaft can be evaluated from LDV measurements. © IMechE 2004.