Hexagonal boron nitride nanosheets (h-BNNSs), with a crystal lattice structure similar to graphene by over 98%, exhibit good lubrication properties as lubricant additives. However, the poor dispersibility in solvents has limited their wide practical applications as lubricant additives. In the present report, water dispersible Pebax functionalized h-BNNSs (Pebax-BNNSs) have been prepared through a one-step solvent-free mechanical exfoliation process which relies on a simple exfoliation of h-BN layers by shearing force in molten Pebax at 200°C. In this process, Pebax molecules can synchronously react with the dangling bonds formed during the exfoliation process to achieve in situ functionalization of h-BNNSs. The reciprocating friction tests demonstrate that the as-obtained Pebax-BNNSs possess excellent antifriction and antiwear performance as water-based lubricant additive with a low concentration of 0.3 mg/mL under atmospheric condition. The friction coefficients can be <0.01, achieving superlubrication. Further systematical investigations on the wear traces, wear debris, and counter balls propose a "dispersion-compensation-filling repairment" friction mechanism. All these results demonstrate that h-BNNSs can achieve superlubrication as water-based lubricant additives via facile surface modification, making them very promising candidates as lubricant additives in practical applications.