Presented in this paper is a method for the design of modular reconfigurable machine tools (MRMTs). An MRMT is capable of using a minimal number of modules through reconfiguration to perform the required machining tasks for a family of parts. The proposed method consists of three steps: module identification, module determination, and layout synthesis. In the first step, the module components are collected from a family of general-purpose machines to establish a module library. In the second step, for a given family of parts to be machined, a set of needed modules are selected from the module library to construct a desired reconfigurable machine tool. In the third step, a final machine layout is decided though evaluation by considering a number of performance indices. Based on this method, a software package has been developed that can design an MRMT for a given part family.