This paper discusses various aspects of: biodegradable hydraulic lubricants; the type of bio-oils (biodegradable) available; the approved test method of bio-oils; a label called Blue Angel used for the identification of environment friendly products; bio-oil applications; practical field test experience and economic impact.The paper provides a general view of the current situation in Central Europe.Practical experience with environment-friendly oil and grease has been known for over 4,000 years. When the pyramids were built, animal and vegetable oil and grease was used to lubricate transport sledges. At that time, it was not an environmental protection consideration. Today it is our challenge to protect people, plants and animals.Who would have thought that environmental protection would become such an important and inevitable issue? Five or ten years ago words like biodegradable, environment-friendly, environment-compatible were definitions hardly known to most people. Today, the situation has changed. Many local and federal government regulations have been introduced and initiatives have been taken by the industry and the private sector in order to reduce pollution and better protect our environment. Every part of our daily life is faced with the issue. This paper concentrates on biodegradable hydraulic lubricants, which represents a small segment of the overall environment issue.