Tool wear conditions monitoring is an important mechanical processing system that can improve the processing quality of wood plastic composite furniture and reduce industrial energy consumption. An appropriate signal, feature extraction method, and model establishment method can effectively improve the accuracy of tool wear monitoring. In this work, an effective method based on discrete wavelet transformation (DWT) and genetic algorithm (GA) – back propagation (BP) neural network was proposed to monitor the tool wear conditions. The spindle power signals under different spindle speeds, depths of milling, and tool wear conditions were collected by power sensors connected to the machine tool control box. Based on the feature extraction method, the approximate coefficients of spindle power signal were extracted by DWT. Then, the extracted approximate coefficients, spindle speeds, depths of milling, and tool wear conditions were taken as samples to train the monitoring model. Threshold and weight of BP neural network were optimized by GA, and the accuracy of monitoring model established by the GA – BP neural network can reach 100%. Thus, the proposed monitoring method can accurately monitor tool wear conditions with different milling parameters, which can achieve the purpose of improving the processing quality of wood plastic composite furniture and reducing energy consumption.