The current work aims to develop a biodegradable lubricant by adding different volume percentages of cashew nut shell liquid (CNSL) in neat castor oil (NCO) and investigating its possibility as replacement to non-biodegradable mineral oil (commercial mineral oil) in industrial applications. The blend exhibiting better tribological properties was additived with different weight percentages of reduced graphene oxide (r-GO) nano-platelets and further tribological tests were performed. The performance of 40%CNSL+NCO was 45.8% better than commercial mineral oil, and with the addition of the 0.5% r-GO in the blend, the performance was improved by 61.7% than the commercial mineral oil. Finally, the novel biodegradable mixture blended with nanoparticles was employed as a lubricant in a gearbox, proving the superiority of the biodegradable lubricant over the commercial mineral oil. © IMechE 2020.