Fire resistant lubricating grease compositions resistant to self ignition and/or capable of self extinguishment when contacted with surfaces having temperatures of up to 9000C are disclosed. The invention provides for grease compositions comprising (1) base oil (which can be mineral, vegetable, synthetic or combinations thereof), (2) at least one grease thickener (selected from calcium sulfonates or lithium-based soaps), and (3) water as major components. The invention also provides a method for the preparation of the grease composition and a method for lubrication of bearings, gears, surfaces and other lubricated components comprising use of the grease composition of the present invention. The grease compositions of this invention display excellent fire resistance properties and still have outstanding physical and performance characteristics for applications where temperatures and loads are high, shock loading is significant and in the presence of significant amounts of water.