In this research, Molybdenum disulfide (MoS2) nanoparticle was synthesised via microwave synthesis. Later, the nanoparticles were dispersed in SAE 20W50 diesel engine oil to formulate the nanolubricant. The results show that nanolubricant with 0.01 wt.% MoS2 concentration showed the coefficient of friction (COF), average wear scar diameter (WSD) decreased by 19.24%, 19.52%, respectively, compared to the base oil. The nanolubricant with 0.01 wt.% concentration of MoS2 nanoparticle showed the enhancement of 61.15% in Oxidation Induction Time (OIT) in comparison to the base oil. Furthermore, MoS2 addition within the base oil demonstrates a ~ 10% improvement in thermal conductivity compared to the base oil.