Two processes of physical liquid phase stripping and chemical redox reduction were used to obtain graphene sheets. Fourier transform infrared spectroscopy and Raman spectroscopy test methods were used to compare and analyze the structure and disorder of graphene. The obtained graphene was modified with oleic acid and stearic acid. The dispersion stability of graphene as a lubricating oil additive was investigated by natural sedimentation method and spectrophotometry. The tribological properties of the graphene dispersion were investigated by a four-ball friction and wear tester. Scanning electron microscope and energy spectrometer were used to characterize and analyze the microscopic morphology and composition of the worn surface. The results showed that the modified liquid phase stripping graphene demonstrated the best anti-wear and anti-friction properties of the dispersion, the lowest friction coefficient is 0.0677, and the average friction coefficient is reduced by about 26%.