This paper presents a simple and systematic multi-criteria decision making methodology to select a cutting fluid for the given application using the preference selection index (PSI) method. In this methodology, cutting fluid is selected for a given machining application without considering relative importance between the selection attributes. Two real time examples are cited from the literature in order to demonstrate and validate the applicability and potentiality of PSI method in solving the cutting-fluid selection problem. It is observed that the relative rankings of the alternative cutting fluid as obtained using PSI method match quite well with those as derived by the past researchers.Reference to this paper should be made as follows: Attri, R., Dev, N., Kumar, K. and Rana, A. (2014) 'Selection of cutting-fluids using a novel decision-making method: preference selection index method', Int.