Two oil-soluble ionic liquids N, N-trimethyl-N-hexadecyl ammonium bis(2-ethylhexyl) phosphate (NP-16))and 1,2-bis-N, N-dimethyl-N-cetylammonium bis (2-ethylhexyl) phosphate (NP-16-2-16) have been synthesized and investigated as a potential friction reduction and anti-wear lubricant additive with anti-corrosion properties. The results indicate that the addition of 1.0 wt % NP-16 into PAO10 can significantly reduce friction coefficient and improve its anti-wear performance under RT and 100 °C. The performance is obviously better than that of traditional additives ZDDP and tricresyl phosphate. PAO10 + 1.0 wt % NP-16 even outperformed the PAO10 with about 40% lower friction and 2 orders of magnitude less wear. The analysis results of SEM, EDS and XPS show that an FePO4 or nitrogen-containing tribofilm is formed on the friction interface when NP-16 and NP-16-2-16 are selected as additives, which play a key role in reducing friction and wear.