Sol-gel zirconia thin films were prepared by dip coating in an ethanol solution of zirconium oxychloride. The zirconia films consisted of a completely tetragonal phase and exhibited nanoscale uniformity. They displayed excellent antiwear and friction-reduction performance in sliding against steel. The friction coefficient (0.13-0.15) and the wear life over 5000 sliding cycles were recorded for the films at a sliding speed of 90 mm/min and a load of 0.5 N. The film was characterized by slight scuffing and abrasion at low loads and sliding speeds.