The high demand for water in oil sands operations in addition to the shortage of fresh water resources mandate continuous search for reliable and cost effective water treatment technologies. Micellar-enhanced ultrafiltration (MEUF) is potentially applicable to produced water treatment. MEUF is, however, susceptible to membrane plugging and back contamination, especially at high surfactant dosages. Recent investigations showed that addition of small amounts of a non-ionic surfactant to an ionic surfactant solution reduces the critical micellar concentration (CMC) of the mixed surfactant solution, and consequently reduces the surfactant dosage required to achieve certain removal of contaminants using MEUF. In the present study a naphthenic acid, octanoic acid, typically existing in produced water is shown to play a similar role as the non-ionic surfactant when added to the cationic surfactant cetylpyridinium chloride (CPC). Cross-flow MEUF using three different molecular weight cutoffs (MWCOs) of polyacrylonitrile (PAN) hollow fiber membranes was used to treat synthetic produced water containing p-xylene. The mixed CPC/octanoic acid solution removed comparable percentages of p-xylene contaminant at much lower concentrations of CPC. Decreasing CPC concentration in the feed resulted in less fouling and higher permeate flux and reduced back contamination. This, in turn, enhanced the performance of MEUF.