A system and method of filtering metalworking fluid is disclosed. A particle filter is provided in fluid communication with a sump of machining equipment to filter particles from a metalworking fluid. The metalworking fluid is filtered using the particle filter to remove metal filings and debris from the metalworking fluid. A tramp oil filter is provided in fluid communication with the particle filter to remove tramp oil, wherein the tramp oil filter includes hydrophobic material to absorb oil. The oil-free metalworking fluid may then be re-circulated back to the machining equipment.