One of the challenges in the transfer of heat during the mechanical machining process is the coolant substance used in the internal cooling method which is generally liquid water or a water-based coolant. This limits the heat transfer capacity insofar as the thermal conductivity of liquid water is concerned. The other difficulty is the requirement for an external mechanical system to pump the coolant around the internal channel, providing efficient transfer of the accumulated thermal energy. This study proposes a novel method to address this issue by using liquid gallium which provides the means to transfer the excess heat generated during the cutting process by integrating the design into an aluminium oxide insert. Combining this with a magnetohydrodynamic drive, the coolant system operates without the need for mechanical input. Liquid gallium is nontoxic and has a much higher thermal conductivity over liquid water. Investigations of the novel cooling system is performance compared against liquid water through numerical modelling, followed by an experimental machining test to ascertain the difference in heat transfer effectiveness, tool wear rates and workpiece surface finish when compared to dry machining and external cooling conditions on stainless steel 316L. Without cooling, experimental machining tests employing a cutting speed of Vc = 250 m min−1 resulted in a corner wear VBc rate of 75 μm, and with the magnetohydrodynamic-based coolant on, produced a VBc rate of 48 μm, indicating a difference of 36% in relative tool wear under the same cutting conditions. Increasing the cutting speed Vc to 900 m min−1, produced a corner wear VBc rate of 357 μm without the active coolant and a VBc rate of 246 μm with the magnetohydrodynamic-based coolant on, representing a decrease of 31% in relative tool wear. Further tests comparing external liquid water cooling against the liquid gallium coolant showed at Vc = 250 m min−1, a difference of 29% in relative tool wear rate reduction was obtained with the internal liquid gallium coolant. Increasing the cutting speed to Vc = 900 m min−1, the data indicated a difference of 16% relative tool wear reduction with the internal liquid gallium. The results support the feasibility of using liquid gallium as an internal coolant in cutting inserts to effectively remove thermal energy.