About 30% of the world’s primary energy consumption is in friction. The economic losses caused by friction energy dissipation and wear account for about 2%–7% of its gross domestic product (GDP) for different countries every year. The key to reducing energy consumption is to control the way of energy dissipation in the friction process. However, due to many various factors affecting friction and the lack of efficient detection methods, the energy dissipation mechanism in friction is still a challenging problem. Here, we firstly introduce the classical microscopic mechanism of friction energy dissipation, including phonon dissipation, electron dissipation, and non-contact friction energy dissipation. Then, we attempt to summarize the ultrafast friction energy dissipation and introduce the high-resolution friction energy dissipation detection system, since the origin of friction energy dissipation is essentially related to the ultrafast dynamics of excited electrons and phonons. Finally, the application of friction energy dissipation in representative high-end equipment is discussed, and the potential economic saving is predicted.