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A new environmental friendly method to supply metalworking fluid called Oil on Water Drop is proposed. In this study, the obtained results using this new method are compared to the dry cutting one in the machining of oil grooves in engine bearings. Conventional machining of engine bearings is carried out in the dry cutting condition; however, it was found that using the new Oil on Water Drop method the machining performances were greatly improved. In terms of machining tool life, a twofold increase was obtained, while an improvement in the machining error led to a considerable reduction in the rejection of parts made in the production line.