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Effective axle oils must efficiently transfer torque from the drive-train to the wheels, while maintaining low axle oil operating temperatures. The kinematic viscosity and viscosity index of oils can affect both torque transfer efficiencies and operating temperatures. However, the optimal oil rheological properties required to maximize torque efficiency and minimize operating temperature vary with operating conditions. For example, Bala et al found that to maximize torque transfer efficiencies and minimize operating temperatures under low torque and high axle speed conditions, low viscosity fluids are preferred. Under high torque and low axle speed conditions, higher viscosity fluids are preferred. Our current studies show that fluids, which form thicker EHD films and have lower EHD friction have higher torque transfer efficiencies and lower axle oil operating temperatures.