The modern industries are preferred the aluminum based alloys for their low density and high hardness. During the machining process, the cutting tool failure is an unavoidable one. This environment rapidly reduces the cutting ability of the tool. To overcome this difficulty we prefer the tool materials selection and tool coating process. The different variety of coatings include TiN, TiCN, TiAIN, AlTiN, chrome nitrides, zirconium nitrides, diamond and diamond-like coatings (DLC), etc. The Nano lubricant approach is used to overcome the disadvantages of conventional anti-wear and friction.