In this paper new approaches to the inspection and control of workpiece dimension in turning are presented. The paper focuses on the novel application of ultrasonic sensors to provide improved part monitoring and feedback to the process controller. The measurement setup is used for both part diameter and wall thickness of hollow shafts. Compensation for sensor misalignment errors are addressed. The dimensional data obtained during cutting is used in a closed feedback control loop to compensate for dimensional errors in real time. The results demonstrate the accuracy, robustness, and capability of the described techniques in operating in wet cutting environment.