Oxidation of oil/paper insulation initiates premature aging and introduces carboxylic acids with eventual increase in oil acidity, which hampers the properties of the oil. In this paper, a membrane separation technology-based purification process for aged insulation oil has been evaluated and reported. The intent of the present study is to eliminate carboxylic acids, dissolved decay contents and other colloidal contamination present in aged oil and enhance the useful life of oil. The potential of the membrane treatment process has been demonstrated using Ultraviolet Visible Infrared Spectroscopy and Fourier Transform Infrared Spectroscopy diagnostic measurements for oil and membrane. Additionally, membrane retention properties like membrane flux, retention coefficient, sorption time and membrane mass have been analyzed to understand the treatment process. To further evaluate the performance of the membrane and effectiveness of the treatment process, acidity, dielectric dissipation factor, relative permittivity, and resistivity measurements of the oil before and after filtration have been also reported. The proposed membrane purification method has been tested for Algerian utility in-service oil samples. It is inferred that, membrane filtration method is a simple and effective method for treatment of aged oils and aids in extending the remnant life of the oil. The procedure is economically attractive because of increasing prices for transformer liquids, cost effective and environmentally sounds.