Carbon fiber reinforced polytetrafluoroethylene (CF/PTFE) composites are known for their exceptional tribological performance when sliding against steel or cast iron in inert gas environments. Compared to experiments in humid air, about an order of magnitude lower wear rate and several times lower coefficient of friction have been reported for tests conducted in dry nitrogen and hydrogen. Moreover, trace moisture has been shown to affect the friction and wear significantly of this tribosystem, although a possible effect of oxygen cannot be ruled out due to uncertainties regarding the oxygen concentrations. While several studies have pointed out the environmental sensitivity of CF/PTFE, the understanding of the underlying mechanisms are very limited. The objective of this research is to investigate the individual and combined effect of oxygen and moisture on the tribological behavior of CF/PTFE sliding against steel. Additionally, this study aims to elucidate the underlying mechanisms that govern the environmental sensitivity of the system. Climate-controlled three-pin-on-disc experiments were conducted in nitrogen atmospheres at various concentrations of oxygen and moisture. The tribological results clearly demonstrate that both moisture and oxygen contribute to increased friction and wear. However, the adverse effect was much more pronounced for oxygen than moisture. A qualitative method was developed to estimate the tribofilm coverage on the CF/PTFE surface. Results showed strong correlation between high coverage of strongly adhered tribofilm and low wear rate. Moreover, a loosely adhered tribofilm was observed on top of the CF/PTFE surface in presence of moisture. FTIR analysis indicated that the loosely adhered tribofilm found in the moisture-enriched environment contained a significant amount of adsorbed water, which may explain the lower coefficient of friction in presence of moisture compared to oxygen. The adsorbed water in the loosely adhered tribofilm could be an indication of moisture-driven lubrication by the non-graphitic carbon in the tribofilm.