Tool flank wear monitoring can minimize machining downtime costs while increasing productivity and product quality. In some industrial applications, only a limited level of tool wear is allowed to attain necessary tolerances. It may become challenging to monitor a limited level of tool wear in the data collected from the machine due to the other components, such as the flexible vibrations of the machine, dominating the measurement signals. In this study, a tool wear monitoring technique to predict limited levels of tool wear from the spindle motor current and dynamometer measurements is presented. High-frequency spindle motor current data is collected with an industrial edge device while the cutting forces and torque are measured with a rotary dynamometer in drilling tests for a selected number of holes. Feature engineering is conducted to identify the statistical features of the measurement signals that are most sensitive to small changes in tool wear. A neural network based on the long short-term memory (LSTM) architecture is developed to predict tool flank wear from the measured spindle motor current and dynamometer signals. It is demonstrated that the proposed technique predicts tool flank wear with good accuracy and high computational efficiency. The proposed technique can easily be implemented in an industrial edge device as a real-time predictive maintenance application to minimize the costs due to manufacturing downtime and tool underuse or overuse.