Dead metal cap plays an important role in the microcutting process because target material piled up on the tool–chip–workpiece interface can alter the cutting geometry. The target of this study is to model and simulate the micro-orthogonal cutting process in the presence of dead metal cap in order to investigate the effects of this phenomenon on the micromachining process outputs (cutting force, thrust force and chip thickness) and stress distribution, equivalent plastic strain and temperature inside the workpiece shear zones. For this purpose, the finite element method with explicit dynamic solution and adiabatic heating effect along with arbitrary Lagrangian–Eulerian approach is used. It is shown that the finite element models with current state-of-the-art assumptions cannot take into account the dead metal cap by default. For this reason, dead metal cap is artificially introduced on the rounded tool edge in this study for carrying out a proper analysis. Several simulations with different dead metal cap geometries are performed and obtained results show that prediction of cutting force, thrust force and chip thickness are sensitive to the presence of dead metal cap and its geometry. Micro-orthogonal cutting experiments are carried out on tubular AISI 1045 workpieces for validating and interpreting simulated results. The error between predicted and experimental data is calculated, and it is shown that simulation performances can be improved by considering the dead metal cap into the process model. For example, it is possible to reduce the error to less than 5% in case of thrust force prediction. This study points out how the target material’s Von Mises stress, equivalent plastic strain and temperature distribution are sensitive to any alteration of the edge geometry due to the dead metal cap. The best dead metal cap configuration in terms of agreement with experiments is also the one introducing a more homogeneous distribution of these quantities along the shear plane.