Two-Needle Lockstitch Machine is provided with substantially enhanced mechanisms such as the direct-drive mechanism, semi-dry head, new thread tension control mechanism and improved oiling system. The Lockstitch Machine is designed with a semi-dry head to eliminate staining with oil from the frame. The Lockstitch Machine is application specific in design and accurate in dimension. Two-Needle Lockstitch Machine can be custom made in various capacity and dimensions as per specific requirements.