A sewing machine includes a needle bar to which a sewing needle is attached, a needle bar up-and-down motion mechanism moving the needle bar up and down and a cutting unit including a cutting needle having a distal end formed with a blade and a cutting needle up-and-down motion mechanism which is independent of the needle bar up-and-down motion mechanism and moves the cutting needle up and down. The cutting unit is located on a sewing machine bed with the blade being directed upward.