This study investigates a novel approach for using cutting fluids (CFs) under the influence of a permanent magnetic field during the turning of AISI 1045 steel with an AISI M2 high-speed steel (HSS) tool. Lubricating and cooling capacities are among the most critical characteristics of CFs. This research analyses the effect of magnetically treated CFs on tool wear and machining temperature. Two types of water-based CFs were employed in the experimental investigation: synthetic and emulsion. To assess the impact of magnetically treated CFs on machining performance, the flank wear (VB) of the cutting tool and cutting temperature were examined under four external cutting conditions: dry-machining, conventional flood cooling, and two magnetically treated CF scenarios. The cutting speed (V) was varied from 25 m/min to 60 m/min, while the feed rate and depth of cut were kept constant at 0.45 mm/rev and 1 mm, respectively. Among the four cutting environments tested, the magnetically treated CFs demonstrated superior wear resistance. The results revealed that applying both magnetically treated CFs during turning reduced tool flank wear by 218% and 188% at the highest cutting speed compared with the conventional use of both CF types. Furthermore, the cutting temperature decreased on average by 9% and 8% when using the two magnetically treated CF types, relative to their traditional counterparts.