Nanofluid lubrication is a novel approach for enhancing energy efficiency of the sliding interfaces which is useful for reducing friction and wear of the machine elements. The SnO2 nanoparticles (NPs) of 25 nm size and concentration 0.03 mg mL(-1) dispersed in polyolester (POE) oil is found to exhibit significant reduction in friction coefficient and wear up to 38 and 42%, respectively, in comparison to neat POE oil. It is also found that the lubrication efficiency depends on size of the NPs, dispersion stability, and concentration. Fourier transform infrared red spectroscopy confirmed that the chemical stability of the POE was preserved after the tribology test and there was no product due to oxidation reaction. Formation of low shear strength tiibofilm containing organic compounds and SnO2 nanoparticles was key factor in reduction of the friction and protection against wear and deformation.