Diamond tools are extensively used in ultra-precision machining due to their exceptional performance. However, when machining challenging materials like Ti6Al4V, diamond tools experience significant wear due to poor machining properties and catalytic effects. Tool wear not only impacts machining quality but also escalates machining costs and energy consumption. Cutting fluids are commonly employed to mitigate interfacial reactions and suppress tool wear. However, traditional cutting fluids are difficult to penetrate the cutting area and have limited lubrication and cooling capabilities. Therefore, in this paper, a technique combining graphene nanofluid and minimum-quantity lubrication (MQL) is used to suppress diamond tool wear. Firstly, micro-milling experiments for Ti6Al4V alloy are conducted using diamond tools in the graphene nanofluid MQL and under a dry environment. The experimental results show that tool wear is effectively suppressed by graphene nanofluids. Subsequently, the cutting process in both environments (graphene nanofluid MQL, dry) is simulated. The suppression mechanism of graphene nanofluid MQL for diamond tool wear is evaluated from phase transition, atomic transfer process, and amorphous behavior of diamond structure. The simulation results show that the contact characteristics, cutting force, and cutting temperature are improved by graphene nanofluids. Tool wear is effectively reduced. In addition, the removal efficiency of workpiece materials has also been improved. This work provides a technical basis for exploring the application of graphene nanofluids in diamond tool damage suppression and micro-milling.