The fuzzy method is proposed for ageing analysis of transformer. The fuzzy controller is used for various input and one output, strictly depends on the number of membership function and there rule base and the type of the defuzzification method. The ageing of transformers is influenced by short term and long term over loads, number and intensity of short circuits, incidence of lightning, and internal faults. The recent development of various techniques for detecting the incipient fault conditions have been improved to some extent; the life expectancy of transformers by resorting to corrective actions in time. The ageing behavior is likely to be different for different types of transformers. The life span of the transformer, thus depends initially on the design and quality of manufacture and later on service conditions and maintenance standard, these factors vary considerably and affect the useful span of service life which therefore needs to be taken into account for residual life assessment. During the natural ageing of transformers, the insulation of winding deteriorates. Cellulose insulation degrades due to heating or electrical breakdown which is dissolved in oil. Hence, the chemical analysis of the Transformer oil gives evidence of changes that are taking place in the winding insulation during operation. Deterioration in transformer cellulose decreases both its electrical and mechanical strength. In this paper a novel fuzzy based algorithm has been implemented on three samples of power transformer oil