Summary. For all dry machining process, temperature generated in the cutting zone is the major challenge. It causes tool failure and results in unsatisfactory surface finish. Application of flood coolant method during machining processes can significantly reduce the temperature and consequently extend the cutting tool life. However, it has serious concerns regarding environmental pollution, operator health and manufacturing cost. These issues are usually attempts to be overcame by using minimum quantity lubrication (MQL) technique. This method merges the advantages of both dry cutting and flood cooling by spraying a small amount of lubricant to the cutting zone using vegetable oil. In this paper, another technique is proposed in order to further enhance the machineability of the stainless tool steel (STAVAX ESR 48 HRC). This involves using of nitrogen gas (N2) and air as cooling medium in combination with oil mist lubricant (MQL). The results show that the combination between nitrogen and oil-mist lubricant much more prolonged the tool life and improved the surface finish than the air-oil mist lubricant medium.