Nickel-based alloys have encountered microstructural changes during machining, which forces machining industries to use cutting fluid excessively. The progress of sustainable methods for machining operations is necessary due to their adverse effect on the environment, operator health, and manufacturing economics. In the present research, the application of an Ultrasonically Atomized Hybrid Nanofluid (UAHNF), a near-dry lubrication technique, has been utilized for performing machining of nickel alloy, and its impact on the machined subsurface layer has been examined. The machining-affected subsurface has been analyzed for plastic strain and microstructural analysis using XRD and EBSD techniques. It has been found that the UAHNF method provides lesser plastic strain and better microstructural evolution than dry cutting. Moreover, it uses a little cutting fluid and is an environmentally benign and economical process.