Abstract: Mo9081 friction modifier was prepared by compounding Molybdenum dialkyl dithiocarbamate with Molybdenum alkyl salicylate. The results obtained by the Four-Ball,Falex and the CA-15 engine test showed that the anti-wear, friction reducing and engine power performances were improved. A30~* engine oil with 1%(wt) Mo9081 friction modifier has the ability to save the fuel on an average about 2% as compared with the same oil without the said additive. Auger Electron Spectroscopy was used to study the wear prevention mechanism of Mo9081 additive.