This study investigates the potential of Spirulina biomass as a lubricating additive for drilling fluid formulations. In this work, this waste protein is evaluated as a lubricant alternative that may decrease the coefficient of friction while improving the rheological profiles and/or reducing fluid loss via permeation in drilling fluids. A processed and dried Arthrospira platensis (Spirulina) biomass is incorporated into drilling fluid formulations and compared to standard lubricant additives for the drilling fluid properties of lubricity, rheology, and fluid loss. Rheological characterization includes the determination of yield stress, gel strength, and viscosity measurements. The major findings of this study include a friction value reduction of up to 30% and a fluid loss reduction of up to 51% by using 3 vol.% Spirulina. Parameters were fit to two rheological models (Bingham plastic and Herschel–Bulkley). After experimentation and analyzing the data gathered, it was determined that Spirulina and the Spirulina–Coastalube mixture in drilling fluids are good potential candidates as more environmentally benign and cost-effective alternative technologies for drilling fluids for decreasing the coefficient of friction, which results in increasing the lubrication performance of the drilling fluids.