All the moving components in an internal combustion engine require a lubricant that allows smooth sliding and/or rolling of interacting surfaces. Lubricant not only minimizes the friction and wear but also dissipates the heat generated due to friction and removes debris from the area of contact. Environmental concerns, decreasing mineral oil reserves and difficult disposal of nonbiodegradable conventional lubricants have urged the researchers to shift towards environmental-friendly lubricants. Number of tribological studies carried out in the past have proved that ionic liquid-based bio-lubricants are sustainable and biodegradable alternative to mineral oils. This paper presents a brief review of properties of ionic liquids and their ability to reduce friction and wear between the interacting surfaces. Tribological performance and compatibility of ionic liquids with various base-oils have been compared under boundary lubrication. The results reveal that phosphonium-based ionic liquids namely tetra-decyl tri-hexyl phosphonium bis(2,4,4-trimethylpentyl) phosphinate (P 66614 ) i (C8) 2 PO 2 and tri-hexyl tetra-decyl phosphonium bis(2-ethylhexyl) phosphate (P-DEHP) are more suitable for tribological applications. Since, ionic liquids can be tailored according to the application and millions of combinations are possible therefore, there is a need to summarize the published data in a more systematic and logical way.