Machine tools are used to manufacture components with desired size, shape, and surface finish. The accuracy of machining is influenced by stiffness, structural damping, and long-term dimensional stability of the machine tool structures. Components machined using such machines exhibit more dimensional variations because of the excessive vibration during machining at higher speeds. Compared to conventional materials like cast iron, stone-based polymer composites such as epoxy granite have been found to provide improved damping characteristics, by seven to ten folds, due to which they are being considered for machine tool structures as alternate materials. The stiffness of structures made of epoxy granite can be enhanced by reinforcing with structural steel. The current work highlights the design and analysis of different steel reinforcements in the lathe bed made of the epoxy granite composite to achieve equivalent stiffness to that of cast iron bed for improved static and dynamic performances of the CNC lathe. A finite element model of the existing the cast iron bed was developed to evaluate the static (torsional rigidity) and dynamic characteristics (natural frequency) and the results were validated using the experimental results. Then finite element models of five different steel reinforcement designs of the epoxy granite bed were developed, and their static and dynamic behaviors were compared with the cast iron bed through numerical simulation using finite element analysis. The proposed design (Design-5) of the epoxy granite bed is found to have an improvement in dynamic characteristics by 4–10% with improved stiffness and offers a mass reduction of 22% compared to the cast iron bed, hence it can be used for the manufacture of the CNC lathe bed and other machine tool structures for enhanced performance.