The development and application of new sources of lubricant/hydraulic oils for industrial use are rapidly increasing. This study investigated the lubricant and hydraulic properties of palm fatty acid distillate (PFAD) as a new, environmental-friendly and renewable source of lubricant and hydraulic oil in different loads and in a standard industrial manufacturing condition. A four-ball tribotester, digital microscope, charge-coupled device (CCD) camera and viscosity meter were used for the investigation. The experiments were done at constant speed (1200 rpm), temperature (75°C) and at running time (60 min), and under five different loading means, 200, 300, 392, 500 and 600 N. The main physical properties of PFAD: antiwear, anti-friction, flash temperature parameter, the coefficient of friction, wear scar diameter, viscosity and extreme pressure condition, were measured and the results obtained were compared to the physical properties of mineral lubricant/hydraulic oil. The results show that the PFAD oil has more lubricant abilities with regard to friction and wear than the commercial engine and hydraulic oils at various loadings.