Inconel 718, valued for its remarkable mechanical, corrosion, and high-temperature resistance up to 700 °C, is a predominant material constituting almost half of all global superalloy usage. Nonetheless, its exceptional properties make it a challenging material to machine, generating elevated heat at the tool-chip interface that strains cutting tools. Although ceramic tools offer one avenue, cemented carbide tools, particularly in “S” grades, find utilization despite limitations. To render cemented carbide tools viable, a lubricating-cooling medium is essential. Traditionally, abundant cutting fluids or conventional flood application (CFA) are employed. Nevertheless, CFA’s broad use raises sustainability concerns across economic, social, and environmental spheres. To address this, extensive global research aims to explore alternatives or substitutes for CFA. This study introduces an innovative approach using internally cooled tools (ICTs), which eliminates fluid release into the atmosphere, curbing improper disposal. ICT operates within a closed-loop cycle, cooling the tool. Moreover, ICT offers low toxicity for operators, minimizing direct contact risks and workplace contamination. Employing cemented carbide inserts with internal coolant galleries, the ICT method underwent tool life tests during Inconel 718 turning, followed by wear mechanism analyses. The study involved three cutting atmospheres (ICT, CFA, and dry machining (DM)) and two tool coating variations (TiNAl and a double coating AlCrN + TiNAl, referred as AlCrN+). With consistent finishing conditions, cutting speed ( v c  = 45 m/min), feed rate ( f  = 0.103 mm/rev), and depth of cut ( a p  = 0.5 mm) remained unchanged. Replicated twice for statistical validity, 18 experiments were conducted. After testing, scanning electron microscopy (SEM) with energy-dispersive spectroscopy (EDS) unveiled wear mechanisms. Results indicated  AlCrN+ surpassed TiAlN coatings, 35% better on average. In contrast, ICT delivered optimal TiAlN-coated tool life, even better than CFA, 27% better. Conversely, AlCrN + coatings achieved the best outcomes with CFA. Irrespective of tool coating or atmosphere, observed wear mechanisms encompassed abrasion, adhesion, and diffusion, with AlCrN+ exhibiting smoother, more uniform wear, predominantly flank, and crater wear. Finally, ICT has shown to be a promising eco-friendly technique with high industrial potential to be explored and improved.