ABSTRACTThe study investigated the potential of waste plastic oil (PO) as an alternative to petroleum‐based lubricants, specifically mineral oil. The rheological properties, dispersion stability, friction, and wear performance of PO were examined and compared with mineral oil. Results showed that PO demonstrated similar lubrication performance to mineral oil. To enhance the lubrication performance of PO, the study incorporated various concentrations of nano CuO solid lubricant additives, resulting in the formation of CuO nano lubricants. These lubricants showed an improvement in friction and wear by 20% and 44% compared with PO. Furthermore, the CuO solid lubricant additives were functionalized and incorporated in the same concentrations into PO, resulting in the formation of functionalized nano lubricants, which further lowered the friction and wear by 28% and 91% compared with PO. The novelty of the paper is that a simple chemical functionalization process that not only helped in improving its dispersion stability of additives in the PO, but also enhanced the wear performance. The mechanisms behind the enhancement of friction and wear performance were discussed. Based on these findings, it can be concluded that incorporating functionalized nano additives in PO improve friction and wear performance in mechanical components, promoting wider utilisation of PO.