In high-speed machining, the sliding interface of chip and tool is very critical as it influences the machining performance. Cutting fluid mostly tries to lubricate this interface to facilitate the ease of chip flow and takes away the heat from the machining zone. In case of softer but challenging materials, it is more important to take care of the frictional issue. Green machining of SiC reinforced aluminium matrix composites is the primary focus of the current work and therefore small quantity lubrication technology has been attempted. It is as such quite challenging to machine these materials. Cyclic formation of adhesion (Built-up edge/layer (BUE/BUL) and abrasion by reinforcement particles result in severe tool wear. The current study investigates tribo-phenomena at sliding interface of Al2124-17SiCp disc and WC-6Co pin and explores suitability of nano-oil aerosols as SQL medium. Ploughing, adhesion, abrasion were predominant under dry sliding. Adhesion and friction-coefficient (COF) were severer with higher normal load and lower sliding velocity. Aerosol of palm-oil could arrest adhesion of aluminium on carbide pin and reduced COF by 80–82% through flm-lubrication but at low load conditions. Diamond/graphite nanoparticles (1 wt%) suspension helped palm-oil to sustain fllm-lubrication even at extreme sliding conditions, reducing COF further and arresting adhesion phenomenon. Rolling of near-spherical nano-diamonds or basal-plane shearing within graphite nano-platelets caused an additional reduction in friction. Graphite nano aerosol was superior. Such tribological benefits, as observed through pin-on-disc experiments was also realized in high-speed milling condition, thus conclusive for industrial application.