Automotive engine oils demand superior tribological properties to prolong the lifespan of mechanical components. This study contributes to that objective by investigating the impact of nickel-coated multi-walled carbon nanotubes (Ni-MWCNTs) as additives to engine oil on tribological properties. Tribological tests were conducted utilizing a reciprocating motion tribometer to simulate the tribo-system of the piston ring and cylinder liner in automobile engines. Additionally, advanced characterization techniques were employed to study wear and lubrication mechanisms. Ni-MWCNTs nano-additives diminished the friction coefficient and wear rate by 15–23% and 68–87%, respectively, compared to baseline oil. The lubrication process is ascribed to the generation of a tribofilm brought about by thermophysical and tribochemical mechanisms. Ultimately, this study offers new insights into improving lubrication performance in automobile engines to enhance engine durability and fuel economy.