The present study describes effects of iron oxide dispersion on friction properties of a low carbon steel interface. The iron oxide was dispersed onto the groove fabricated with cutting. The friction and wear property was evaluated with a lathe incorporated to a friction measurement system in dry condition. The experiment was carried out at 3.4m/s of sliding speed and at 200 N of an applied load with interval contact condition. Results showed that the friction coefficient of the surface containing ferrite oxide layer penetrated into the spiral groove was higher than that of the nominal surface. It was also found that the surface morphology including color quality resulted in the oxidation was different depending on the nominal surface condition.