Vegetable based insulating oil is a green substitute for mineral insulating oil, which has poor oxidation stability. Thus, oxidation stability is a key index for its popularization and application, while there is no corresponding test method. This work summarized the oxidation mechanism, process of vegetable based insulating oil, and current test methods of oxidation stability used in vegetable oil or traditional mineral oil. By comparing those methods, an improved method based on Rancimat method was proposed, which was more suitable for vegetable based insulating oil. This work has made a certain contribution to the promotion of green and sustainable materials.