This review focuses on applying nanofluids in Minimum Quantity Lubrication (MQL) for machining processes, emphasizing their potential to enhance cutting performance while reducing environmental and economic costs. The objective is to analyze the advancements in nanofluid-based MQL systems, highlighting their impact on improving tool life, surface quality, and thermal management compared to conventional lubricants. The novelty of this study lies in its comprehensive evaluation of various nanoparticles, such as metal oxides and carbon-based materials, and their distinct effects on lubrication and cooling mechanisms in different machining techniques. At an optimal nanoparticle concentration of 3%, the cutting temperature is reduced by 50% and lubrication efficiency is enhanced by 60%. By consolidating experimental findings and addressing implementation challenges, this review offers valuable insights into optimizing nanofluid formulations for sustainable and efficient machining operations.