To improve the quality of products produced from microforming, various nanolubricants have been applied in the field of micromanufacturing in recent years. In this paper, the effects of glycerol-based lubricant containing TiO2 NPs (NPs) on micro deep drawing (MDD) of austenitic stainless steel (ASS) SUS301 were studied, and the lubrication mechanism involved was discussed. The MDD experiments were conducted with the SUS301 foils under dry, 1, 2, and 4 wt% TiO2 NP lubrication conditions. The results show that the use of the TiO2 nanolubricants can significantly improve the quality of the drawn cups in terms of decreased wrinkling and surface roughness. Besides, the concentration of TiO2 NPs influences lubricity by reducing friction during the MDD process. The peak drawing force is the lowest when 2 wt% nanolubricant is applied, which drops to 72.54 N from 77.38 N under dry conditions. The micro cup drawn under 2 wt% TiO2 nanolubricant has the best quality among those obtained under all the lubrication conditions. The lubrication mechanisms are derived from the mending effects of TiO2 NPs and the formation of thin lubricant films associated with the open lubricant pockets (OLPs) and close lubricant pocket (CLPs) theory in the MDD. The CLPs function as reservoirs that retain lubricants to counteract the load pressure, whereas the OLPs lead to lubricant leakage due to the higher flow resistance. It was found that the lubricant film and NPs are insufficient at a low concentration (1 wt%), while the lubrication performance can be enhanced with increased NP concentration. However, there exist apparent agglomerations on the surface of the produced micro cup when using 4 wt% nanolubricant, which greatly deteriorates the lubricant performance in the MDD process. It is concluded that the lubricant containing 2 wt% TiO2 NPs demonstrates the best lubrication performance during the MDD of ASS SUS301.