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Thermodynamics has historically been used to derive characteristic material properties. In this study, fundamental thermodynamics is applied to grease. First‐principle formulations of existing material properties—heat capacity and storage modulus—and new properties—thermal strain and stress coefficients, chemical resistance and thermo‐chemical decay coefficient—are derived, some of which are experimentally determined. A new group of Maxwell relations is introduced by replacing the classical compression work with the grease shearing work . The physical interpretations and implications of these properties on grease behaviour and performance are presented. Experimental measurements of the derived properties are performed in accordance with the theoretical formulations. Six different grease types are studied. Obtained results are shown to conform with anticipated, observed and established grease behaviours. The proposed properties can be used in grease performance and degradation analyses, as well as grease selection for lubrication applications.