The object of the proposed research is to develop a consistent theory of lubrication with two-component lubricants in the hydrodynamic and elasto-hydrodynamic regimes. The lubricants considered are liquids containing either bubbles, as found in practice in cavitating bearings and squeeze-dampers, or droplets, as found in many metal forming operations. The theoretical study will be based on mixture theory for multi-phase continua. The goal is construction and solution of a number of boundary value problems that characterize the various technical applications of these multi-component lubricants.