Minimum quantity lubrication (MQL) is a sustainable method that has been efficiently applied to achieve machinability improvements with various materials in recent years, such as hardened steels, superalloys, soft metals, and composites. This study is the first to focus on the performance evaluation of MQL and dry milling environments with AISI 1040 steel. The tool wear, cutting temperature, and power consumption were considered as the quality responses while cutting speed, feed rate and machining environment are taken as input parameters. The effects of the influential factors are analyzed using analysis of variance (ANOVA) and bar charts. Additionally, Taguchi signal‐to‐noise (S/N) ratios are utilized in order to determine the optimum parameters for the best quality responses. The results show that the MQL system provides better performance compared to dry milling by reducing the tool wear, cutting temperature, and power consumption. According to the ANOVA results, the cutting environment affects the cutting temperature (37%) and power consumption (94%), while cutting speed has importance effects on the tool wear (74%). A lower cutting speed (100 m/min) and feed rate (0.10 mm/rev) should be selected under MQL conditions to ensure minimum tool wear and power consumption; however, a higher feed rate (0.15 mm/rev) needs to be selected along with a low cutting speed and MQL conditions to ensure better temperatures. A comparative evaluation is carried out on the tool wear, cutting temperature, and power consumption under MQL and dry environments. This investigation is expected to contribute to the current literature, highlighting the superiority of sustainable methods in the milling of industrially important materials.