A Monte Carlo algorithm has been developed by the authors to simulate the chemical vapor deposition (CVD) processes of diamond films. The method considers both the diffusion and the incorporation of the growth radicals on the growing surface in simulating the evolution of the morphology and microstructure. The calculation of configuration energy is used to determine the orientation of adsorbed growth radicals. The effect of processing variables such as nucleation density and substrate temperature on the morphology and microstructure is discussed. It is found that competitive characteristic and coarsening effect exist in the simulation results, which agree with the experimental observations.