The smart toolholder is the core component in the development of intelligent and precise manufacturing. It enables in situ monitoring of cutting data and machining accuracy evolution and has become a focal point in academic research and industrial applications. However, current table and rotational dynamometers for milling force, vibration, and temperature testing suffer from cumbersome installation and provide only a single acquisition signal, which limits their use in laboratory settings. In this study, we propose a wireless smart toolholder with multi-sensor fusion for simultaneous sensing of milling force, vibration, and temperature signals. We select force, vibration, and temperature sensors suitable for smart toolholder fusion to adapt to the cutting environment. Thereafter, structural design, circular runout, dynamic balancing, static stiffness, and dynamic inherent frequency tests are conducted to assess its dynamic and static performance. Finally, the smart toolholder is tested for accuracy and repeatability in terms of force, vibration, and temperature. Experimental results demonstrate that the smart toolholder accurately captures machining data with a relative deviation of less than 1.5% compared with existing force gauges and provides high repeatability of milling temperature and vibration signals. Therefore, it is a smart solution for machining condition monitoring.