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The work reported here was initiated in the attempt to develop a bio-based two-cycle SI engine lubricant as an alternative to commercially available mineral based synthetics. In the first phase of the project, it was discovered that straight soy based biodiesel at any volume ratio with gasoline had insufficient lubricity to prevent engine seizure. Mixtures of synthetic with biodiesel proved to have adequate lubricity. A two-cycle lubricant was then synthesized via a trans-esterification of canola oil with hydrogen peroxide and vinegar forming canola oil based biodiesel (COBB). COBB proved to have superior lubricity to synthetic lubricant. The superior lubricity of COBB is hypothesized to be due to a saturated solution of non-reacted canola oil in the biodiesel. This hypothesis was tested using mixtures of canola oil in a solution of phenyl acetate as a two-cycle SI engine lubricant.