Design analysis was performed on the Nanotech 450UPL, an Ultra Precision 2-Axis CNC Diamond Turning Lathe. Frequency, thermal, and static analyses were performed using SolidWorks Simulation, a finite element analysis software, with a 3D model of the lathe. The goal was to understand how the lathe responds to heat loads generated by the motor, spindle, and magnetic tracks, and to determine the errors that thermal expansion may cause. Throughout this research, it was determined that air-cooling is sufficient for most uses. Transient thermal analysis has shown that displacements at the motor and spindle and will generally not affect the accuracy of the lathe. To reach steady state requires around 18 hours of continuous use, which is longer than the typical work cycle. If extended use is intended, then the optional water cooling will ensure the highest precision even at the maximum thermal loads.