In small quantity cooling lubrication (SQCL) grinding, small quantity of cutting fluid is air-atomized to serve the purpose of cooling and lubrication during the process. As the flow rate of cutting fluid is intended to be set as low as possible, it is essential to develop high performance cutting fluids. In the present work, it has been attempted to enhance cooling-lubrication and wetting characteristics of a bio-degradable flower seed extracted oil, namely sunflower oil, with suspension of multi-walled carbon nano tubes (MWCNT). The suspension was realized by ultrasonic agitation provided through a 700 W probe sonicator. This new generation fluid was used as a cutting fluid in small quantity cooling-lubrication (SQCL) mode; for grinding hardened AISI52100 steel by a vitrified bonded alumina wheel. Thermal conductivity, anti-frictional properties and therefore the cooling-lubrication characteristics of sunflower oil could be enhanced significantly by the dispersion of nanoparticles. Similarly, wettability of the ordinary sunflower oil was substantially improved with nano-suspension. Augmentation of its overall quality by such nano particle suspension subsequently led to remarkable reduction in requirement of specific energy in the grinding process, as compared with the values obtained by using ordinary sunflower oil (SQCL mode) and soluble oil (delivered in conventional flood and SQCL mode). The wear rate of wheel was also significantly minimized and Ft/Fn ratio could be kept at steady and lower level, which depict the better sharpness retention of grits under nano-SQCL environment. Surface quality was superior under the nano-SQCL environment. Compressive residual stress could be achieved on the ground surface along with acceptable surface roughness. © 2016 Elsevier B.V. All rights reserved.