It is necessary to develop a new metal cutting technology which does not use cutting fluid, since cutting fluid can have undesirable effect on workers's health and working environment. For this to be possible, it is necessary to replace the conventional method of using cutting fluid, whose basic functions are removing chip and heat, and providing lubrication between tool and chip. In this work, cooled air is utilized in order to replace cutting fluid. Experiments were carried out while cutting workpiece with HSS flat endmill under a variety of supply conditions for cooled air. Also the performance characteristics of the air cooling system. which was built for the experiments, were carefully analyzed. For the reliable operation of air cooling system. moisture contained in the cooled air had to be removed before being supplied to the workpiece and tools. It was found that depending on the amount of its flow rate the temperature of cooled air changes at the time of injection from the nozzle. The flow rate of cooled air also plays an important role in removing the accumulated chip on the workpiece. After comparing the flank wear for the three cases of using cooled air, cutting fluid, and pure dry technique, it was demonstrated that the level of flank wear was similar for the cases of cooled air and cutting fluid. The pure dry technique, however, showed higher level of flank wear than cooled air.