In this paper, dielectric properties (BDV and permittivity) of two vegetable oils (Palm Fatty Acid Ester and FR3) used in power transformers are studied. Also, partial discharge inception voltage (PDIV) of Kraft paper impregnated with these oils is measured. All the tests were carried out at room temperature and the samples were prepared following the same procedure. Both the impregnated paper and the vegetable oils were aged at 140ºC for 11 days to study the evolution of the dielectric properties with the thermal aging. PDIV has been also measured for different number of paper sheets (from 4 to 6), analyzing the dependence of PDIV on the thickness of solid insulation. Dielectric characterization of the oils showed that they are suitable to use in power transformers. BDV of the oils decreased with the aging and PFAE performance was better. Dielectric constant of both oils is almost the same. PDIV results showed that both oils are suitable for the impregnation of Kraft paper in terms of dielectric properties. PDIV of FR3 insulating system was higher than PFAE system in all the studied cases. FR3 insulating systems showed a decrease of PDIV value after the aging process, whereas PFAE one remained almost constant.