Engine oil oxidation is one of the major reasons for oil aging which can result in variations in the physical and chemical properties of oil. Organic acids generated by oil oxidation can react with water to form inorganic acids and acidic substances (including organic and inorganic acids) that corrode engine parts, resulting in the generation of rust or damage to engine parts. This is one of the important reasons why oil should be regularly changed. One of the most commonly applied methods for judging the aging degree of engine oil is monitoring its acid number (AN). However, generally, the effect of oil water content on acid value measurement is not considered. When oils are used in engines, they are often contaminated by water due to condensation, which accelerates engine oil aging. Therefore, it is crucial to explore the water content effect on AN in the process of engine oil aging. In this research, a water content sensor was applied to characterize moisture content in oxidized oil samples. The sensor could also obtain oil sample electrical conductivity which corresponded to its dielectric constant. Using a mid-infrared spectrometer to measure oil sample AN at this point to obtain the variation in AN with oxidation time, oil sample AN was connected in series with the water content, dielectric constant and electrical conductivity. These parameters were monitored through sensors, and the effect of water content on AN was studied. Experimental results revealed that with the increase in oxidation time, the water content, electrical conductivity, dielectric constant increase and AN of oil were increased. At the same time, since the temperature had a greater effect on electrical conductivity, the application of an air-conditioned constant-temperature environment removed the effect of temperature change on electrical conductivity.