The CNC Grooving Tool Holder is a specialized, high-precision tool shank designed to securely grip and present a narrow, indexable carbide insert for the purpose of cutting precise grooves into the workpiece on a CNC lathe. This holder is engineered with high rigidity and a slim profile to minimize deflection and ensure the straight, accurate plunge necessary for achieving high tolerance groove depths and widths. The holder features a robust clamping system that guarantees reliable and repetitive insert indexing, which is critical for maintaining consistency in operations like creating O-ring grooves, snap-ring grooves, or back-chamfers. Holder includes carbide grooving tip and key.