WS2 nanoparticle with closed-cage structure (fullerene-like IF) are already being synthesized in macroscopic amounts from the respective oxide nanoparticles. They have been studied as superior solid lubricants under harsh conditions in recent years. Under severe contact conditions both fluids and greases are squeezed out from the contact area and consequently do not provide adequate lubrication conditions. Addition of even a small amount of IF nanoparticles to the oil was found to reduce the friction coefficient and wear rate, and increase the load-bearing capacity of the friction pairs. Furthermore, IF nanoparticles were impregnated into polymer and metal coatings and into self-lubricating porous metal parts, and were found to alleviate both friction and wear remarkably well. In another set of experiments, IF nanoparticles were shown to provide excellent tribological behavior for the contact between a ceramic alumina block and silicon nitride ball. The mechanism for the improved tribological behavior of the IF nanoparticles is being investigated. In addition to the rolling friction, gradual exfoliation of the IF onions and transfer of monomolecular WS2 sheets onto the metal surface (third body transfer) is shown to play a major role in alleviating friction and wear. This work suggests numerous applications for this new solid-state nanolubricant.