The role of industrial lubricants in machinery is to reduce friction and wear between moving components. Due to the United Nations’ tendency to reduce dependency on fossil fuel, a general awareness is strongly driven towards developing more eco-friendly lubricants. Palm oil possesses promising properties, which promote it to be a competitive alternative to the hostile mineral oils. Still, marginal oxidation stability, viscosity, and tribological properties remain critical issues for performance improvement. This paper presents an improved palm grease using reduced graphene oxide (rGO) and zinc oxide (ZnO) nano-additives at different concentrations. Oil and grease samples were tested for viscosity, oxidation stability, pour point, penetration, roll stability, dropping point, churned grease-oil release, copper corrosion, friction, and wear. ZnO additives enhanced the oxidation stability by 60% and shifted the pour point to 6 °C. Adding ZnO and rGO to the palm grease increased the load-carrying capacity between 30% and 60%, respectively, and reduced the friction coefficient by up to 60%. From the wear scar morphologies, it is believed that graphene 2D nanoparticles formed absorption layers which contributed to the increase in load-carrying capacity, while ZnO chemically reacted with the metallic surface layer, forming zinc compounds that resulted in a protective boundary lubricating film.