Yes, this problem can be fixed. Make sure that the dust does not get trapped in the tool, if there is dust trapped, get rid of it by spraying compressed air into the opeinings on the side of the device. Also make sure that carbon brushes need don't need replacing, since worn out brunshes might cause the burning smell. Lastly, make sure that the motor is not burnt out. If the motor is burnt out and causes the burning smell, replace it with new motor. Dremel MultiPro 395 Troubleshotting Guide