Vegetable oils are often proved to be promising for industrial lubrication applications among which soybean oil found to be better due to its attractive and desirable thermo physical properties for machining compared to other vegetable oils. However, already it was established that influenced desirable thermophysical properties necessary for a vegetable oil through which better machining performance can be obtained. Among the various vegetable oils which are practically in use for machining applications as a cutting fluid soybean oil is found to be best and which has the scope for improvement of thermophysical properties nearer to the optimized values obtained. Therefore, the present work aims to improving the influencing thermophysical properties of soybean oil by reinforcing with suitable nanoparticles. Therefore, within the present work two categories of nanoparticles such as metallic-Aluminium oxide (Al2O3) and non-metallic reduced graphene oxide (RGO) particles were selected for dispersion in soybean oil with different concentrations for obtaining the required properties. The obtained results reveal that non-metallic nanoparticles i.e RGO with 0.5% concentration in soybean found to be better for imparting nearer to optimum properties required for obtaining better machining performance. Further sedimentation studies were carried out to ascertain the stability of particles. The studies revealed that at 0.5% concentration of RGO assisted with ultrasonication resulted for better stability of suspended nanoparticles for long term usage.