Natural antioxidants, especially those used in edible oil, are safer compared to chemically synthesized antioxidants. Therefore, research on natural antioxidants has become prevelant. Antioxidant peptides derived from food protein can effectively prevent oil oxidation. Protein hydrolyzation is widely applied for the production of antioxidant peptides in industry, and bioinformatics is employed nowadays to generate the desired peptide sequence. Furthermore, the mechanism of antioxidant peptides in the oil system is still controversial, which limits the further development of antioxidant peptides as food antioxidants. This review introduces the preparation method of antioxidant peptides and their mechanisms as well as applications in the oil. It will help to comprehensively understand the function of antioxidant peptides and promote their development in the oil field.