The effects of shear degradation on the microstructures and properties of grease were investigated using a planetary ball mill to simulate a bearing shear zone on grease. The microstructure, cone penetration, colloidal stability, rheological properties noise properties, water washout characteristics and low-temperature torque of lithium grease were characterized. The microstructure of the initial lithium grease is a three-dimensional network structure formed by the uniform fibers. The entanglement level is high. As the ball milling shear time increases, the network structure of lithium grease is destroyed and the fibers are sheared to become short. Eventually all of them become short fibers. The performance test of lithium grease reveal that the cone penetration increases, colloidal stability, structural strength, noise properties, water washout characteristics of lithium grease gradually decreased with the increase of ball milling shear time. Additionally, the low-temperature starting torque and running torque of the grease gradually decrease. This phenomenon occurs due to changes in the microstructure of lithium grease. The shear degradation of lithium grease was mainly divided into two stages: the rapid stage was the destruction of the thickener network structure and the fibers being shortened by shearing. The slow stage was the process in which short fibers were sheared into shorter fibers.