A new type of boron-nitrogen modified fatty acid as water base lube additive was prepared and the chemical structure characterized by infrared spectrum. The tribological properties of the additive in water were evaluated by friction testers. The morphographies and tribochemical species of the worn surfaces were analyzed by means of X-ray Photoelectron Spectroscope (XPS). The results showed that the additive is excellent in increasing loadcarrying capacity, anti-wear and friction-reducing abilities of water. The lubrication mechanism is inferred that a high strength adsorption film and a tribochemical reaction film are formed on the rubbing surfaces due to the carrier effect of the long chain fatty acid molecules, high reaction activities of nitrogen, electron-deficient orbit of boron and their synergisms.