Nanoparticles as lubricant additives demonstrate powerful friction reduction and antiwear properties and are potential alternatives to traditional additives in line with green and environmentally friendly requirements. However, the vast majority of currently available research focuses on the tribological properties of various nanoparticles in base oils at laboratory, which has a large gap with their application in engineering. To cope with the rapid economic and industrial development in China, there is a need to improve the tribological properties of nanoparticles. This paper highlights the current status and development trend of nanoparticles as lubricant additives in China. The factors influencing the tribological properties of nanoparticles, such as their composition, particle size and morphology, as well as the base stocks and their combination with other additives, are summarized. Furthermore, the research progress in the lubrication mechanism of nanoparticles is discussed, and the issues concerning the application of nanoparticles as lubricant additives as well as their future directions are discussed. This review is expected to provide an impetus to guide the design of high-performance, fully formulated lubricant systems containing nanoparticles as the lubricant additive.