The effect of air-oxidation and ozone surface treatment of carbon fibers (CF) on tribological properties of CF reinforced Polytetrafluoroethylene (PTFE) composites under oil-lubricated condition was investigated. Experimental results revealed that ozone treated CF reinforced PTFE (CF/PTFE) composite had the lowest friction coefficient and wear. X-ray photoelectron spectroscopy (XPS) study of carbon fiber surface showed that the increase in the amount of oxygen-containing groups enhanced interfacial adhesion between CF and PTFE matrix. With strong interfacial adhesion of the composite, stress could be effectively transmitted to carbon fibers; carbon fibers were strongly bonded with PTFE matrix.