This research investigated the wheel wear and tribological characteristics in wet, dry, and minimum quantity lubrication (MQL) grinding of cast iron. Water-based Al2O3 and diamond nanofluids were applied in the MQL grinding process and the grinding results were compared with those of pure water. During the nanofluid MQL grinding, a dense and hard slurry layer was formed on the wheel surface and could benefit the grinding performance. Experimental results showed that G-ratio, defined as the volume of material removed per unit volume of grinding wheel wear, could be improved with high-concentration nanofluids. Nanofluids showed the benefits of reducing grinding forces, improving surface roughness, and preventing workpiece burning. Compared to dry grinding, MQL grinding could significantly reduce the grinding temperature.