Inconel used in industrial applications is usually subjected to extreme conditions of heat and pressure. Desirable material properties like high hardness and high compressive residual stresses are not always ensured by using conventional cooling methods, while grinding such alloys. However, with increasing hardness, cutting forces and energy requirement also increase naturally. Hence, a balance has to be obtained between the two. This paper uses soap water and liquid carbon dioxide as the grinding fluid during surface grinding of Inconel 718, a Nickel based alloy. A novel method to apply both soap water and liquid carbon dioxide is employed here. It is observed that minimum grinding force and high surface hardness are achieved using the soap water- liquid CO2 combination. Furthermore, ground surface quality is found to improve using liquid carbon dioxide.