A tool holder has a tool body with at least one pocket for receiving at least one cutting insert. The at least one pocket has a support surface and an abutment surface transverse thereto, and a first stress relief surface located between the support surface and the abutment surface. The first stress relief surface extends along a first axis towards a first pocket peripheral surface. A second stress relief surface is formed between the first stress relief surface and the first pocket peripheral surface. The second stress relief surface has a convex shape in a cross-sectional view taken in a second plane containing the first axis. The convex shape may have a radius greater than 0.3 mm.