Droplet spreading on a rotating surface has been modeled with an aim to design an efficient atomization-based cutting fluid (ACF) system for micromachining processes. To this end, single-droplet impingement experiments are conducted on a rotating surface to capture the 3D shape of a droplet upon impingement. A parameterization scheme is then developed to mathematically define the 3D shape of droplet upon impingement. The shape information is used to develop an energy-based model for droplet spreading. The droplet spreading model captures the experimental results within 10% accuracy. The spreading model is then used to predict the cooling and lubrication for an ACF-based microturning process. The model captures the cooling and lubrication trends observed in microturning experiments. A parametric study is conducted to identify the significant factors affecting the performance of an ACF system. Droplet speed is found to have a dominant effect on both cooling and lubrication performance, particularly, with a low surface tension fluid for cooling and a low surface tension and high viscosity fluid for lubrication.