In the case of internal finishing of SUS304 stainless steel pipe by a magnetic field assisted finishing process, the smooth rotational motion of the magnetic abrasive along the inner surface of the pipe is necessary to achieve a smooth surface. Lubricant is considered indispensable to obtain the smooth rotational motion of the abrasive since it reduces the friction between the abrasive and inner surface of the pipe as well as cools the finishing area and ejects chips from the finishing area. However, lubricant can lead to environmental pollution and requires chemical cleaning after finishing. It is, therefore, desired to minimize the lubricant in the finishing process. This paper discusses the role of the lubricant in the process and proposes a method of environmentally conscious magnetic field assisted finishing. The intemal finishing experiments of pipes demonstrated that the dry condition is unacceptable in this process. Distilled water was, therefore, applied as substitute for commonly-used soluble type barrel finishing compound. This achieved smooth internal finishing of the pipe without disturbing constituent components of the pipe material as the commonly-used lubricant does, showing the feasibility of an environmentally conscious magnetic field assisted finishing process.