With state-of-the-art 3D measurement systems, short-wave structures such as tool marks cannot be resolved directly inside a machine tool chamber. Up to now, measurements had to be performed outside the machine tool. We present an interferometric sensor that carries out such measurements inside the machine tool, which saves time-consuming and expensive setup procedures. Our sensor HoloCut uses digital holography as measurement principle. By the use of multiple wavelengths, we get a large unambiguous axial measurement range of up to 2 mm and achieve micron repeatability, even in the presence of laser speckles. With a lateral resolution of 7 μm across the entire 20 x 20 mm2 field of view, both macro- and microstructures (such as tool marks) are measured with an axial resolution of 1 μm. Consequently, this qualifies HoloCut for in-situ measurements and integration in a machine tool. In this paper, the boundary conditions of integrating interferometers inside a machine tool are evaluated. Occurring vibrations and limited available space are particularly challenging constraints: The optical and mechanical design of HoloCut is introduced along with numerical correction algorithms: A piezo-stage setup is used to induce known displacements. Using these algorithms, measurements even with a closed-loop control of the machine tool head activated are demonstrated on a coin measurement. The use of HoloCut is motivated on the base of the daily operation of a 5-axis machine tool: We present an evaluation of an exemplary ISO 25178 parameter Sq using HoloCut measurements and compare those with reference, yet not inline-capable systems.