In forming procedure of the micro grooves in the flat micro-groove heat pipe, the tie rod is often observed to be broken and the multi-tooth cutter is damaged due to the sharp increase of the ploughing-pulling pressure. This paper theoretically analyzes the factors affecting the capillary heat transferring limit of the micro-groove heat pipe, and simulates the machining process using finite element to acquire the best processing parameters: the squeeze angle is 120°, the drawing depth is 0.25mm, and the ploughing-pulling velocity is 100mm/s. Then these parameters are verified by real manufacturing experiments. The experimental results show that the ploughing-pulling pressure of the micro-groove forming process is close to the strength limit of the rod or multi-tooth cutter, and the process makes little swarf during work. Thus, only using the appropriate machine tool parameters, forming parameters and forming methods can make the wicking structure of flat micro-groove micro-heat pipe with the best heat transferring performance.