Large amount of cutting oil consumption is one of the issues for environment. The Minimum Quantity Lubrication (MQL) technique has been applied to the near-dry cutting process. However, MQL technique generates oil mist which is harmful to the working environment and the health of factory workers. In this study, a new lubrication system called Direct Oil Shot Lubrication System (DOS) was developed and applied to milling processes. The performances of DOS technique was evaluated by measuring the floating oil mist and carrying out the cutting tests. The amount of floating oil mist of DOS system was considerably reduced compared to the MQL. The behavior of small oil drops supplied from DOS nozzle to cutting edge was analyzed by means of a high speed video observation, and the optimum setting for DOS was obtained. The experimental result shows developed DOS system realized the smaller density of oil mist floating than the MQL technique while the DOS attained the almost same lubrication effect in milling process as the MQL technique.