Natural cutting fluids prepared using Nano particles prove to be highly eco-friendly and creates a healthier workplace in the engineering industry. Synthetic cutting fluids in machining applications increases health hazard of the operator and pollutions in environment. Natural cutting fluids prepared using Nano particles prove to be highly eco-friendly and creates a healthier workplace in the engineering industry. The nanoparticle used are Oxide ceramics, metal carbides, nitrides, layered (Al2O3+Al), PCM-S/S, and Nano metals. The base fluids used are such as water, ethylene, glycol, oil, bio fluids and polymer solutions. This article critically analyses the effect of different nanoparticles on the surface quality and characteristics in machining applications. Nano fluid used in machining process improves thermal conductivity, reduces the Coefficient of friction, cutting forces and temperatures and increase in viscosity reduces the cutting tool wear.