This paper presents the results of researches on development of technological system of environmentally friendly dry cutting with compensation of physical effects of cutting fluid. The proposed technological system includes cutting tool with nano-scale multi-layered composite coating, generating device of ionized gas environment which supplied to the machining area and the exciter unit of ultrasonic vibrations that enhance penetrating ability of ionized gas environment into the contact areas of cutting tool. The conducted researches have shown high efficiency of the developed technological system of environmentally friendly cutting not only in comparison with dry cutting, but also in comparison with traditional technologies using cutting fluids.