Ultrathin graphene (UG) has been prepared by exfoliation of graphite oxide by a novel technique based on focused solar radiation. Graphene based engine oil nanofluids have been prepared and their frictional characteristics (FC), antiwear (AW), and extreme pressure (EP) properties have been evaluated. The improvement in FC, AW, and EP properties of nanofluids is respectively by 80, 33, and 40% compared with base oil. The enhancement can be attributed to the nanobearing mechanism of graphene in engine oil and ultimate mechanical strength of graphene. © 2011 American Chemical Society.