Static and dynamic performance parameters of two-lobe journal bearing, working with non-Newtonian lubricant has been obtained. Krieger-Dougherty model is used to obtain the effective viscosity of nano-lubricant for a given concentration of solid-particle in base lubricant. Modified Reynolds equation is solved to obtain bearing performance parameters for couple stress model and variable viscosity model. Dynamic coefficients are also determined for various couple stress parameter. Results reveal a noticeable increase in flow co-efficient and load carrying capacity while there is a decrease in friction variable. It also reveals a significant betterment in dynamic co-efficient of bearing.