6502 type alkanolamide was synthetized by two-step reaction of palm oil and organic alcohol amine. The cutting fluid was prepared by adding 13%(weight) of the 6502 type alkanolamide, and its performance was evaluated. The results show that the prepared cutting fluid has excellent extreme pressure, anti-wear and anti-corrosion properties, its friction coefficient is as low as 0.062, and the maximum non-seizure load reaches 367 N. The anti-corrosion of the diluent of cutting fluid for iron reaches A level for 24 h. The comprehensive performance of the cutting fluid with 13%(weight) of the 6502 type alkanolamide can reach the national standard of GB/T 6144-2010.