5-axis machine tools are widely utilized in manufacturing complex sculptured components. Typically, tool-paths for 5-axis machine tools are discontinuous and they must be smoothened to generate continuous motion. This paper proposes a novel real-time interpolation algorithm for 5-axis machine tools and industrial robots to generate continuous and rapid feed motion along discrete point-to-point tool-paths by locally blending tool position and orientation, i.e. tool-pose, within user-specified tolerances. Proposed algorithm utilizes a filtering technique to smoothen pose trajectory of the tool and continuously interpolate 6DOF motion in real-time accurately. Tool-pose errors are controlled locally at junction points, i.e. corners, of the tool-path by timing consecutive feed commands precisely. Kinematic limits of the machine axes are considered in determining maximum feedrate along consecutive moves. Simulation studies show that proposed algorithm can interpolate 5-axis machining tool-paths accurately within kinematic limits in a computationally effective and real-time suitable scheme.