Today all manufacturing industries are very keen to bring sustainability to all levels of the production cycle, from system, to products and processes. At the process level, cutting fluid is one of the most unsustainable materials, which needs to be addressed properly considering its impact on the environment, production cost and the safety of operator. This paper mainly focused on the development of a new environment-friendly biodegradable coconut oil-based green cutting fluid (COGCF) and its performance assessment in the micro end milling process of Ti-6Al-4V. The developed COGCF were tested for biodegradability, microbial compatibility, corrosivity, and toxicity. The analysis of toxicity, biodegradability, and microbial tests confirms that the developed COGCF is more environmentally friendly than the commercial cutting fluid (CCF). The LC50 value for the COGCF was found to be greater than 1050, indicating a low level of toxicity, whereas it was less than 50 for CCF, indicating high toxicity. Additionally, COGCF exhibited a reduced corrosion effect. Its performance as a cutting fluid was evaluated by analyzing the tool wear. Tool wear was assessed by examining adhesive wear, abrasion wear, flank wear, tool edge radius enlargement, and coating delamination. All experiments were conducted under Minimum Quantity Lubrication (MQL) conditions to minimize cutting fluid usage, and the performance of COGCF was compared with dry machining and CCF. Tool life with COGCF and CCF was found to be comparable, suggesting that COGCF presents a promising alternative for CCF.