Yep, and there are other phenomena, such as tidal locking. Ever wondered why we always see our Moon from the same side, and why its rotation period perfectly matches its orbital period? Over aeons of time geological tidal effects between the Earth and the Moon transferred orbital momentum from Moon's body to its rotation, causing deceleration of its orbit and forced the rotation to become more synchronous.
IO is slightly larger than our Moon, and yet it is one of the most geologically active body in our solar system. Normally, such a small body would be cold and dead like our boring Moon, but instead IO experiences tidal heating due to Jupiter's gravity, spewing all sorts of interesting things onto its surface. Basically IO is an extreme example of the aforementioned process. It's quite amazing if you think about it. In a nutshell, the energy generated by gravitational interactions is thermally radiated away; i.e. you have this bizarre, slow, elaborate conversion of gravitational interplay into photons!
Saturn's satellite system is very weird. Those collection of moons undergo orbital resonance, creating the bands in Saturn's rings, and orbital periods with integer ratios. Again, all of this incurs loss of momentum within the participating bodies.
Oh and gravity waves could also decay orbits.