In order to improve environmental conditions of metal cutting operations, a new hygienic cutting fluid of neat oil type was developed, and its performance tests were carried out for turning operations from various viewpoints. The newly developed cutting fluid consists basically of liquid paraffin derived from saturated hydrocarbons, and contains edible hydrogenated rapeseed oil and refined palm oil as lubricant. The total amount of aditives is 40%. The properties of the new cutting fluids are equivalent to those of JIS 2-3 when compared to those which contain extreme pressure additives. Some typical toxic tests were carried out, and it was approved that the toxicity of the new cutting fluid was extremely low when compared with other commercially available oils. The newly developed, cutting fluid also showed a good long term stability. Machinability tests of plain carbon steel containing 0.45% C (JIS S 45 C) were carried out with high speed steel tool (JIS SKH 9) on an engine lathe. The newly developed cutting fluid showed similar or even better performances at cutting speeds from 70 to 80m/min in tool life, surface roughness and chip disposal etc. when compared with a commercially available cutting fluid of JIS 2-3 type.