In this study, MoS2–hBN hybrid nanoparticles were synthesized using an advanced microwave platform for new nanolubricant formulations. The synthesized nanoparticles were characterized by field-emission scanning electron microscopy, energy-dispersive X-ray spectroscopy, X-ray diffraction, and Raman spectroscopy. The hybrid nanoparticles were then introduced into a 20W40 diesel-based engine oil to produce a nanolubricant. The physical and chemical properties of the nanolubricant were investigated, including the viscosity index, stability, volatility, tribological properties, oxidation properties, and thermal conductivity. The results showed that the inclusion of 0.05 wt% MoS2–hBN hybrid nanoparticles in the oil significantly reduced the coefficient of friction and wear scar diameter by 68.48% and 35.54%, respectively. Moreover, it exhibited substantial oxidation and thermal conductivity improvement of 38.76% and 28.30%, respectively, at 100 °C. These findings demonstrate the potential of MoS2-hBN hybrid nanoparticles as an effective additive to enhance the properties of nanolubricant significantly. Furthermore, this study offers valuable insights into the underlying mechanisms responsible for the observed enhancements. The promising outcomes of this investigation contribute to the advancement of nanotechnology-based lubricants, showcasing their potential for improving engine efficiency and prolonging the lifespan of machinery.