Abstract In the present investigation, self-lubricating cutting tools were fabricated by adding various elements such as NiCr, Ag, Mo, SrSO4, and CaF2 to Zirconia Toughened Alumina in order to overcome the difficulties that occurred in dry machining. Three significant process parameters; cutting speed (50, 125, 200, and 275 m/min), feed rate (0.1 and 0.2 mm/rev), and depth of cut (0.1 and 0.2 mm) were selected for the machining process. The performance measures such as chip thickness ratio, shear angle, and tool wear, were investigated. The experimental runs were conducted with Taguchi L8 mixed-level orthogonal array. Technique for Order of Preference by Similarity to Ideal Solution is a multi-criteria decision-making method used to determine the best alternative from a set of options. Turning experiments have been performed on the AISI 4340 steel workpiece with various combinations of machining parameters. The findings revealed the incorporation of SrSO4 and Mo at 10Wt.% and CaF2 at 5Wt.% (i.e., self-lubricating cutting tool-4) achieved better mechanical properties and wear resistance due to the formation of a self-lubrication layer on the rake face of the cutting tool. A confirmation experiment is executed in order to verify the outcomes in the end. Finally, there is a noticeable improvement in the outcomes compared to the base cutting tool, i.e., chip thickness ratio is 35.77%, shear angle is 27.31%, and tool wear is 58%. The mechanism for improving performance measures is discussed in detail.