Recently all environmental worries are calling for reducing the usage of fluids in machining operations. One of the promising solutions that appeared lately is minimum quantity lubrication (MQL). This research aimed to develop an eco-friendly cooling system for a lathe machine and assess its performance. After considering the customer needs, the needs were translated into engineering specifications in the conceptual design phase, and then the quality function deployment was developed. Three concepts were generated and evaluated considering the selection criteria, and a final concept was selected using the decision matrix method. Following this, a detailed design and fabrication of the sub-systems such as the oil tank and a structure accommodate all the components. The developed system was tested on six different workpiece samples to compare the MQL system with the conventional one. In general, the MQL system resulted in lower surface roughness values as well as lower tool wear.