This study intends to explore the lubrication mechanism of hexagonal boron nitride nano-additive. Synergistic analysis comprising worn surface observation, surface wettability testing, and the Stribeck curve principle is used to test this water-based lubricant on steel–steel contact. Distilled water and 0.1–5.0 vol.% hexagonal boron nitride nano-additive is used to prepare a mixture using sonification technique. A viscometer is employed to determine the viscosity of the nanolubricant. A four-ball tribometer is employed to determine the tribological characteristics and lubrication performance. Hamrock and Dowson equations are used to determine the minimum film thickness needed for lubrication. Surface morphology characteristics are inspected using energy-dispersive X-ray spectroscopy, scanning electron microscopy, surface tension meter, and profilometer. The efficacy of the lubricant as friction and wear-reduction additive is determined to have a mixed lubrication regime with the optimum concentration of 1.0 vol.% hexagonal boron nitride. Protecting film, mending effect, rolling effect, and polishing effect have been recommended as the lubrication mechanisms. Increasing the addition of hexagonal boron nitride additives may lead to a change in the lubrication regime from mixed to hydrodynamic, where agglomeration is observed in the nanoparticles, and an increase in friction is observed.