Accurate contour tracking is one of the main tasks in modern manufacturing processes. By considering coupling effects among multiple axes, this paper proposes a cross-coupled proportional-integral-derivative (PID) control developed in position domain, and the controller is applied to a multi-axis computer numerical control (CNC) machine for contour tracking performance improvement. Stability analysis is conducted for the developed position domain cross-coupled PID control using the Lyapunov method, and guidelines for the selection of control gains are provided. The contour tracking performance are improved compared to an equivalent time domain controller, since the reference axis in position domain control does not contribute any error to the overall contouring error of the system. Simulation results demonstrate the effectiveness of cross-coupled PID position domain control for both linear and circular contour tracking, and prove the robustness of the controller to deal with random disturbances. It also shows that position domain cross-coupled PID control provides better contour tracking performance over position domain PID control and the equivalent time domain PID control.