Objective To research anti-friction and anti-wear properties of the muscovite/ CeO2 compound powder in the 500SN base oil. Methods The muscovite/ CeO2 compound powders of different ratios were prepared from muscovite, Ce(NO3)2 ·6H2O and C2H2O4·2H2O by the solid state reaction method. The compound powder was modified by oleic acid. XRD and SEM were used to study the structural features and surface morphology of muscovite/ CeO2 compound particles. The tribological properties of the prepared lubricating oil added with the powders were tested by the wear experiment. Results The oil that was added with muscovite/ CeO2 compound particles or simple muscovite powders had better anti-wear and anti-friction performance than the base oil; and the best performance was seen in the lubricating oil with muscovite/10% CeO2 compound powders, whose friction coefficient was reduced by 10. 7% and the wear scar diameter was reduced by 24. 4% compared to the base oil. Conclusion Muscovite/ CeO2 compound powder has good anti-friction and anti-wear ability, which can repair the worn surface. Muscovite/ CeO2 of reasonable ratio can improve the anti-friction and anti-wear properties of base oil effectively.