In the present study, the machinability indices of surface grinding of AISI D2 steel under dry, flood cooling, and minimum quantity lubrication (MQL) conditions are compared. The comparison was confined within three responses, namely, the surface quality, surface temperature, and normal force. For deeper insight, the surface topography of MQL-assisted ground surface was analyzed too. Furthermore, the statistical analysis of variance (ANOVA) was employed to extract the major influencing factors on the above-mentioned responses. Apart from this, the multi-objective optimization by Grey–Taguchi method was performed to suggest the best parameter settings for system-wide optimal performance. The central composite experimental design plan was adopted to orient the inputs wherein the inclusion of MQL flow rate as an input adds addition novelty to this study. The mathematical models were formulated using Response Surface Methodology (RSM). It was found that the developed models are statistically significant, with optimum conditions of depth of cut of 15 µm, table speed of 3 m/min, cutting speed 25 m/min, and MQL flow rate 250 mL/h. It was also found that MQL outperformed the dry as well as wet condition in surface grinding due to its effective penetration ability and improved heat dissipation property.