The object of this study is to discuss the effect of cutting fluid on the mechanism of chip formation in orthogonal cutting. Rehbinder effect has been known as a phenomenon, the reduction of mechanical strength, when the metal is exposed in a polar organic environment or the surface of metal is coated with some polar organic substances. About the cause of Rehbinder effect there have been many different ideas by Rehbinder, Merchant, Shaw, Sakakida and etc. In this report, the effects of surface active medium (magic ink) upon the mechanism of chip formation on the orthogonal cutting of copper and the mechanical properties of the work material are experimentally discussed with constant rake angle. Under the condition of polar organic environment the experimental results are as follows; 1) The chip thickness becomes thinner and slip line pitch on the free surface of chip becomes smaller than that of dried cutting area. 2) The order of alternation of cutting ratio was changed. 3) The friction angle on the tool face is not affected by the depth of cut. 4) The cutting force and shear strain on the shear plane decrease remarkably, therefore the work material must be embrittled under polar organic environment.