This study investigates the thermal generation dynamics in the spindle unit of a CNC milling machine. The main objective is to analyze the heat transfer from the bearings to the housing during operation, using simulations and experiments. An air-oil-cooled lubrication system is employed, which enables the airflow to dissipate some of the heat produced. Before conducting the experiment, heat generation and transfer are accurately predicted. The air-oil mixture, formed by pressurized air atomizing oil droplets, is effective in cooling high-temperature regions. A spindle ER16-80SK 24k is integrated with a CNC machine for real-time data acquisition, including parameters such as spindle speed and temperature. The results show significant temperature rises in all bearings, which reach a steady state after an hour of operation. There are noticeable differences in range, from 6.1% to 43.4%, between the experimental and simulated maximum temperatures, indicating possible real factors not considered in the simulation. The environmental impacts of oil particle emission are also discussed, which require proper ventilation management during operations. This research provides valuable insight into the thermal dynamics of CNC milling machine spindles and establishes a solid basis for further research and development in this important field of machining technology.