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In order to detect degradation of engine oil lubricant, bench testing along with a number of diesel-powered Ford trucks were instruments and tested. The purpose of the bench testing was primarily to determine performance aspects such as repeatability, hysteresis effects and so on. Vehicle testing was conducted by designing and installing a separate oil reservoir along with a circulation system which was mounted in the vicinity of the oil pan. An innovative oil sensor was directly installed on the reservoir which can measure five (5) independent oil parameters (viscosity, density, permittivity, conductance, temperature). In addition, the concept is capable of detecting the oil level continuously during normal engine operation. The sensing system consists of an ultrasonic transducer for the oil level detection as well as a Tuning Fork mechanical resonator for the oil condition measurement.