Metal peeling, or orthogonal machining under applied chip tension, is an energy-efficient means for producing thin metal strip or foil in a single step. However, unlike conventional rolling, the peeled strip thickness is difficult to determine and control a priori as the thickness is sensitive to peeling parameters, cutting edge condition and feedstock material properties. This paper presents a real-time strip thickness control framework using two different modes: tension control mode where the tensile stress applied to the strip during peeling is adjusted to control the thickness; and speed control mode where the strip thickness ratio is directly controlled by regulating the strip transport velocity. A systematic analysis of strip formation mechanics and the feedforward-feedback control algorithm for both the control modes are presented. Peeling experiments are performed with copper using an instrumented metal peeling system to demonstrate the efficacy of the control modes in terms of achieving uniform and controlled strip thickness. It is shown that under ideal steady-state conditions, both the control modes are equivalent. However, under non-ideal conditions—such as feedstock material inhomogeneity, process disturbances, and tool wear—the performance of each control mode differs significantly. Specific scenarios where one control mode outperforms the other are identified, and experiments are performed to bring out the advantages and limitations of each control mode. The study provides important insights into the strip formation process and thickness dependence on process parameters in peeling, while establishing a practical framework for real-time monitoring and control of strip thickness under non-ideal process conditions.