Sustainable manufacturing has become popular among manufacturers and industrialists due to the increase in environmental issues, health impacts and stringent law enforcement. The use of vegetable oils as metalworking fluids is one way to implement manufacturing sustainability. Palm oils are commonly used as cooking oils. Further, palm oil is also the main oil sources in Southeast Asia besides petroleum. Therefore, the potential use of palm oil as functional lubricant for future replacement of petroleum-based oil is indeed important. In this study, the refined, bleached and deodorized (RBD) palm olein has been formulated into various properties of modified RBD palm oil (MRPO) by transesterification process at different molar ratio of RBD methyl ester (FAME) with trimethylolpropane (TMP). Next, the MRPOs are compared with synthetic ester on lubrication and tribology tests according to standard based on American Society for Testing and Materials (ASTM). The results observed that MRPO have outstanding performance in lubrication and tribological behavior. MRPO2 recorded the highest viscosity index and the lowest coefficient of friction which are 496 and 0.06, respectively. MRPO2 showed to be an alternative biodegradable cutting fluid in promoting sustainable manufacturing activities by reducing the bad impact on environment and health.