Recently, nanomaterials such as graphene, polytetrafluoroethylene, WS2, and MoS2 have emerged as pioneering additives and fillers in metal nanocomposite electrodeposition, offering innovative solutions for lubrication and tribological enhancement. Electrodeposition, known for its high efficiency, reliability, operational simplicity, and cost-effectiveness, has become a preferred method for the protection of industrial components from excessive wear or abrasion. In particular, nickel (Ni) matrix composites fabricated via electrodeposition function as an environmentally friendly substitute for coatings such as hard chromium. These Ni-based composites exhibit multifunctional properties, including enhanced hardness, modified surface wettability, improved anti-friction/wear performance, and lubrication properties. This review begins by explaining the principles and mechanisms of electrodeposition, along with the chemical structures and properties of lubricating nanoparticles. It discusses dispersion methodologies of these nanoparticles in the electrolyte solution to address aggregation problems. In addition, it introduces codeposition models for Ni/nanomaterials and examines the key parameters that influence this codeposition process. This review systematically explores the mechanical properties, tribological performance, and surface wettability of resulting Ni-based nanocomposites, along with their potential applications and practical advantages. Finally, it discusses the opportunities and challenges associated with nanomaterial-enhanced metal composites, aiming to introduce new avenues for their utilization in electrodeposition.