Atomization-based cutting fluid systems (ACFs) are increasingly being used in micromachining applications to provide cooling and lubrication to the tool–chip interface. In this research, a shielding nozzle design is presented. A computational fluid dynamic model is developed to perform parameter analysis of the design. The numerical simulations were accomplished using the Eulerian approach to the continuous phase and a Lagrangian approach for droplet tracking. Based on the results of the simulations it is determined that the shielding nozzle is effective at providing droplets to the cutting surface at an appropriate speed and size to create a lubricating microfilm.