There is still a lack of effective lubrication condition monitoring methods in the field of diesel engines. The paper proposes a novel thermoelectric approach to divide the lubrication state of bearings. First, the generation mechanism of thermoelectric potential on bearings is clarified. Then, both experimental and simulation studies are done, and a strong correlation between lubrication and thermoelectric potential is shown. The film thickness and temperature are further confirmed as significant factors influencing thermoelectric potential. Generally, the thermoelectric potential increases with temperature. However, a small film thickness ratio (when the film thickness ratio is less than 4) will suppress the thermoelectric potential. Three typical lubrication states of bearings are distinguished through thermoelectric potential and supported by the Stribeck curve results. Moreover, the significant influence of lubrication on the bearing is confirmed through the analysis of surface morphology and composition.