As environmental restriction kas continuously become more strict, machining technology has emphasized on development of environment-friendly technology. In cutting technology, it has been well recognized that cutting fluids might have undesirable effects on workers health and working environment. In this study, compressed cold air was used as a replacement for conventional cutting fluids. The cooling effect on cutting tool was analyzed using the finite element method and the computational fluid dynamics. This study focused on the temperature simulation of cutting tool by real flow analysis of cold air. The maximum flow rate and the minimum temperature of compressed cold air are 300ι/min and -30$^{circ}C$ respectively. To compare the simulation and experimental results, inner temperature of the cutting tool was measured with the thermocouple embedded in the insert. The results show that the analysis of cutting temperature using FEM and CFD is resonable, and the replacement of cutting fluid with cold air is available.