This paper presents a novel lubrication method for milling processes that employs cooling system-assisted minimum quantity lubrication (CSMQL) using a thermoelectric cooling system. The CSMQL method improves the cooling effect in the cutting area and enhances processing quality, in addition to reducing energy consumption. Four different coolant strategies including CSMQL, dry, minimum quantity lubrication (MQL), and wet methods were compared in processing mill die steel (SKD11), which is widely used in industry. Different aspects of the milling performance (e.g. surface roughness, morphology, milling temperature, and milling forces) were investigated using these coolant strategies. The experimental results show that not only is the surface roughness of steel milled using CSMQL better than that of steel milled using dry and MQL methods, but CSMQL also produces fewer tool marks on the workpiece surface. In addition, it was found from observations of chip color that using the CSMQL method reduced the cutting temperature by 27% and the cutting force by 22%, compared with dry machining. In summary, the use of CSMQL can not only improve the surface roughness and reduce the cutting force and cutting temperature, but also promote processing quality. This study will help researchers develop more efficient cooling strategies in the future.