Cutting fluid has been widespread in the metal cutting industry due to its cooling and lubrication properties. However, the excessive application of cutting fluids can lead to significant environmental issues and raise machining costs. Recently, the ultrasonic atomization-based cutting fluid (UACF) spray using minimum quantity has shown superior cooling and lubrication performance during machining processes, while the precise management of UACF spray and its influence on machining performance requires further comprehension. In this case, this paper developed a novel ultrasonic atomization-based cutting fluid (UACF) spray system, featuring a specialized nozzle unit that included an internal droplet nozzle and an external gas nozzle. Subsequently, the dynamics of droplet impingement on a rotated surface were analyzed, and the spray characteristic parameters were investigated. Then, comparative milling experiments were conducted under different cooling conditions, including dry cutting, flood cooling, high-pressure air cooling, and UACF. The influence of these cooling conditions on machining performance was investigated, in terms of cutting force, temperature, surface roughness, and chip morphology. The results obtained indicate that the critical velocity of droplet spreading was dependent on the cutting fluid properties, ultrasonic frequency, and velocity of the rotated surface. The droplets generated by ultrasonic atomization follow a Gaussian distribution. Flood cooling and UACF exhibit similar effects in reducing cutting force, temperature, and surface roughness due to the efficient penetration of liquid film into tool-workpiece interfaces. Additionally, UACF can significantly reduce the consumption of cutting fluid by up to 98.5 % compared to flood cooling. The effective cooling and lubrication in UACF can improve the surface quality and suppress machining vibration. Moreover, the appropriate droplet velocity can ensure the formation of a thin film on the tool surface, thereby enhancing cooling and lubrication performance in the UACF process.