Cutting fluids play a significant role in machining operations, impact shop productivity, tool life and quality of work. The reduction in the consumption rate of the cutting fluid leads to the minimization of production cost and environmental hazards. This could be achieved by the enhancement of its thermal and tribological properties with the inclusion of suitable additives in the cutting fluid. In recent years various nanoparticles were used as additives in the conventional cutting fluid to enhance its properties. In the present work, silver nanoparticles was synthesized, characterized, dispersed in cutting fluid and experimented in a turning operation. Heat carrying capacities of the cutting fluid, cutting forces during machining process and surface finish of the work piece were assessed by suitable instruments for cutting fluids with and without silver nanoparticles under different machining conditions. From the experimental results, it was observed that inclusion of silver nanoparticles in cutting fluid showed a significant reduction in tool tip temperature, cutting force and surface roughness of the work piece.