Lubricants are chemical substances, derived oils obtained from natural resources or synthetic materials which are used to carry the task of lubrication in an engine or machine for any industry. It is used so as to reduce the risk of severity between two sliding or rolling surfaces by developing the smoothening film between them. The basic reason for applying the lubricating materials between the two surfaces is that it has low shear stress which permits easy sliding of one surface over the other surface by shearing the layers of lubricating components. These materials not only reduce friction and ease out maintenance, but also reduce wear, absorb shock, reduce temperature, minimize corrosion and sealing out contaminants. Lubricant has characteristics with large number of physical and chemical properties that help to improve its strength during its applications in varying working environment. A good lubricant in general, therefore possesses characteristics like high boiling point, low freezing point, high index, thermal stability, hydraulic stability, demulsibility, corrosion prevention, high resistance to oxidation and many others. The use of lubricant is subjected to the state, phase and mode of application. Industry using oil based lubricant needs to identify its use in specific machine and its component parts. Hence its selection with specific characteristics is to be identified and accordingly various additives have to be added to comply with. Due to high price of oil and to save valuable foreign exchange, there is an imperative necessity felt by the mill to regenerate, reclaim, purify and recycle the used oil. In this paper, a detailed discussion on lubrication oil, both petroleum based as well as synthetic one their requisite properties for specific use, classifications, additives required for right selection are made. Selection of lubricating oils in terms of special characteristics for paper industry with special emphasis on paper machine elements is highlighted. Case studies of mill applications, extent of energy saving and cost benefits are demonstrated.