Vibration phenomena are a main consideration during the material removal operation, as it has prominent effects on the product quality, cutting tool life, and productivity of that machining operation. Within the context of machining performance, role of enhanced stiffness and damping on the dynamic behaviour of machining systems such as turning and milling is well established. In this experimental analysis, investigations have been conducted for identifying the natural characteristics and dynamic responses of a milling process with the application of a novel carbon based (CNx) nano-composite damping material. TheCNx material has been applied into the joint interface of a workholding device with adaptive dynamic stiffness. Prior investigations of this material, produced by theplasma enhanced chemical vapor (PECVD) process, showed inherent damping capacity via interfacial frictional losses of its micro-columnar structures. For thisstudy, natural characteristics of the workholding system have been characterized bythe modal impact testing method. Dynamic responses during the machining processhave been measured through the vibration acceleration signals. The ultimate objective of this study is to comprehend the potentiality of CNx coating material forimproving machining process performance by analyzing the frequency response functions and measured vibration signals of the investigated milling process with varying stiffness and damping levels.