Vibration-assisted machining (VAM) has the advantages of extending tool life, reducing cutting force and improving the surface finish. Implementation of vibration assistance with high frequency and amplitude is still a challenge, especially for a micro-milling process. In this paper, a new 2D vibration stage for vibration-assisted micro-milling is developed. The kinematics of the milling process with vibration assistance is modeled, and the effects of vibration parameters on the periodic tool-workpiece separation (TWS) is analyzed. The structure of the vibration stage is designed with flexure hinges, and two piezoelectric actuators are used to drive the stage in two directions. An amplifier is integrated into the vibration stage, and the dynamics of the whole vibration system are identified and analyzed. Micro-milling experiments are conducted to determine the effects of vibration assistance on cutting force and surface quality.