The reduction in crude oil resources, its volatile prices, and the irreparable environmental pollution caused by their production and consumption have led to worrying global challenges. At the same time, ever‐increasing population growth and growing industrialization have resulted in an increasing demand for petroleum‐based crude oil products, including lubricants. In this respect, the proper management of biomass to produce higher value‐added products such as biolubricants is very important. Iran, with a population of more than 80 million, is the fourth largest producer of crude oil and one of the largest lubricant producers in the region, but the development of clean bio‐based lubricants has always been neglected there, mostly due to the abundance of petroleum. The present study, reviewing the status of Iran's lubricant industry and its technical and environmental challenges, investigates the potential use of conventional edible oils and introduces novel drought‐resistant native edible oil sources, for the production of biolubricants. It is believed that this case study could be of assistance to researchers and specialists in developing countries, enabling them to take action to confront the challenges ahead by relying on sustainable development based on renewable and environmentally friendly products. © 2018 Society of Chemical Industry and John Wiley & Sons, Ltd