During the machining process, extreme temperatures can occur in the various heat generation zones of the material. These temperatures can sometimes reach or exceed the melting point. To accurately represent the influence of this heating, heat transfer mechanisms must be incorporated into simulation models. The simulation model described in this paper provides a new feature that includes heat transfer to the environment by the application of a finite-temperature molecular dynamics (md) simulation technique. The modelled system is not adiabatic. The simulated thermal environment described herein produces realistic simulations of the material surfaces. The exposed surfaces are cooler than the bulk as expected. The process simulations obtain realistic levels of thermal activation, which affect the material properties and the machining process parameters, e.g. friction forces, etc. Heat transfer with the environment is found to be of the same order of magnitude as the thermostat boundary layer for the simulations performed. As expected, at the temperatures that occur during machining, radiative heat transfer dominates over convective transport. The thermal model also clearly shows the heat associated with the various machining regions, due to plastic deformation and friction.