Yes, the best lubricant for sway bar bushings is heavy duty silicone grease, but new OEM sway bar bushings do not need grease – they are impregnated with something waxy that seemlingly doesn’t normally ever squeak. Urethane bushings however do tend to squeak no matter how much grease you put on initially. To properly lubricate a sway bar bushing, unless it has a zerk fitting, it needs to be removed, greased on the inside, then re-installed. Instead of doing that, it might be less trouble in the long run just to buy a set of proper size OEM bushings that don’t need grease.
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I have used aftermarket urethane bushings, very well lubricated with grease from the sway bar bushing manufacturer and it squeaked. Went back to the OEM bushings and zero squeaks.
The exception are aftermarket sway bar bushings that have special texture on the inside to contain grease and those tend not to squeak.
The Best Grease for Polyurethane Bushings
What grease should you use for polyurethane bushings? The folks at DST tested several options for poly bushing lubrication to see which works best.
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