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Drilling muds with less environmental impact are highly desired over conventional diesel-based mud systems, especially in light of the emerging strict environmental laws. In this article, a novel oil-in-water (O/W) emulsion drilling fluid formulated with a methyl ester extracted from Indian mango seed oil was evaluated. The effect of the weight percent of different constituents of the emulsion/suspension including the oil phase, bentonite, and polyanionic cellulose polymer on the rheology and the fluid loss was examined. The methyl ester oil phase/mud system displayed superior physical, chemical, rheological and filtration properties relative to the diesel and the mango seed oil. Eco-toxicity of the methyl ester and diesel (O/W) emulsion mud systems was assessed using the acute lethal concentration test. The Indian mango methyl ester (O/W) emulsion mud displayed much less impact on fish population. Flow characteristics collected from the flow model at 85 °C suggested excellent shear thinning behavior of the Indian mango methyl ester (IMME) (O/W) emulsion mud. Moreover, the IMME (O/W) emulsion displayed strong pseudoplastic behavior, an attractive feature in a drilling mud, with increasing clay content and polymer concentration. The methyl ester mud was thermally stable over a wide range of the constituent concentrations. Furthermore, a particle size analysis revealed that engineered drilling muds targeting suspension of particles with certain size range can be formulated by changing the volume fraction of the methyl ester in the mud system. [ABSTRACT FROM AUTHOR]