Efficient machining of the polyester nanocomposite components requires a better understanding of machinability characteristics of such material, which has become an urgent requirement for modern industrial production. In this research, the micro-milling of polyester/halloysite nano-clay (0.1, 0.3, 0.7, 1.0 wt%) nanocomposites were carried out and the outcomes in terms of tool wear, cutting force, the size effect, surface morphology, and surface roughness were compared with those for plain polyester. In order to accomplish the machining of the material in ductile mode, the required feed per tooth was found to be below 0.3 µm. The degree of surface breakage was also found to decrease in ductile mode. A maximum flank wear VB of 0.012 mm after removing 196 mm3 of workpiece material was measured.