A combination nano and microparticle treatment for engines enhances fuel efficiency and life duration and reduces exhaust emissions. The nanoparticles are chosen from a class of hard materials, preferably alumina, silica, ceria, titania, diamond, cubic boron nitride, and molybdenum oxide. The microparticles are chosen from a class of materials of layered structures, preferably graphite, hexagonal boron nitride, magnesium silicates (talc) and molybdenum disulphide. The nano-micro combination can be chosen from the same materials. This group of materials includes zinc oxide, copper oxide, molybdenum oxide, graphite, talc, and hexagonal boron nitride. The ratio of nano to micro in the proposed combination varies with the engine characteristics and driving conditions. A laser synthesis method can be used to disperse nanoparticles in engine oil or other compatible medium. The nano and microparticle combination when used in engine oil can effect surface morphology changes such as smoothening and polishing of engine wear surfaces, improvement in coefficient of friction, and fuel efficiency enhancement up to 35% in a variety of vehicles (cars and trucks) under actual road conditions, and reduction in exhaust emissions up to 90%.