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For the last decade, the lubricant industry has been trying to formulate biodegradable lubricants with technical characteristics superior to those based on petroleum. A renewable resource, mahua oil, is good alternative to mineral oil because of its environmentally friendly, non toxic and readily biodegradable nature. The triacylglycerol structure of mahua oil is amphiphilic in character that makes it an excellent candidate as lubricant and functional fluid. It is also very attractive for industrial applications that have potential for environmental contact through accidental leakage, dripping or generates large quantities of after-use waste materials requiring costly disposal. Vegetable oil in its natural form has limited use as industrial fluids due to poor thermo-oxidation stability, low temperature behavior and other tribochemical degrading processes.