In this research, rheological and tribological performance of additive V2O5 nanoparticles in a light mineral oil has been investigated. For rheological performance, the addition of 0.2 wt% V2O5 could reduce the viscosity of the base oil for 6%. Considering the overall friction reduction in boundary, mixed, and hydrodynamic lubrication regimes, that with 0.1 wt% V2O5 exhibited the best effect. Friction coefficient of a base oil could be reduced by 33%. In terms of wear, the addition of 0.2 wt% V2O5 showed the lowest wear rate, which is 44% reduction compared to base oil. Through Raman spectrum and EDS analysis, it was found that V2O5 involved tribochemical reaction during rubbing. Vanadium intermetallic alloy (V-Fe-Cr) was found to enhance the antiwear performance. This research revealed that V2O5 nanoparticles could be an effective additive to improve tribological performance.