Chatter is a series of unwanted and extreme vibrations which frequently happens during different machining processes and impose variety of adverse effects on the machine-tool and surface finish. Chatter has two main types namely forced-chatter and self-existed chatter. The forced-chatter has an external cause; however, self-exited chatter has no external stimuli, rather it is created due to the phase difference between the previous and current waves on the surface of the workpiece. Due to the self-generative nature of this type of chatter, its recognition and prevention is much more difficult. For preventing self-exited chatter its model should be available first. The chatter is usually simulated as a one degree of freedom mass-spring-damper model with unknown parameters that they should be determined somehow. In this paper, the parameters of the tool equation of motion i.e. mass, damping, and stiffness coefficients of the system are predicted through a wavelet-based method online, and then based on the achieved parameters, the system is controlled via Model Predictive Control (MPC) approach. For the validation, the algorithm is applied to 25 different experimental tests in which the acceleration of the tool and cutting force are measured via an accelerometer and a dynamometer. By investigation of the SLDs generated by the predicted parameters, the presented system identification method is validated. Also, it is shown that the chatter vibration is completely restrained by means of MPC. For investigation of the MPC performance, MPC algorithm is compared with PID controller and simulations has indicated a much stronger performance of MPC rather than PID controller in terms of vibration attenuation and control effort.