Lubricant-based nanofluids were prepared by dispersing carbon nanoparticles in gear oil. In this study, the effects of the particle size, shape and dispersity of the particles on the tribological properties of nanofluids were investigated. Dispersion experiments were conducted with a high-speed bead mill and an ultrasonic homogenizer, and the surfaces of the nanoparticles were simultaneously modified with several dispersants. The effective thermal conductivity of the nanofluids was measured by the transient hot-wire method, and the tribological behaviors of the nanofluids were also investigated with a disk-on-disk tribo-tester. The results of this study clearly showed that the combination of the nanoparticles, the deagglomeration process, the dispersant and the dispersion solvent is very important for the dispersity and tribological properties of nanofluids. Lubricant-based nanofluids showed relatively low thermal conductivity enhancement, but they were highly effective in decreasing the frictional heat that was generated. For nanofluids containing 0.1vol.% graphite particles in an oil lubricant, The friction coefficient in the boundary and fluid lubrication range was reduced to approximately 70% of the original value of pure lubricant.