This paper aims at designing an oxygen level monitoring technique in an oxygen cylinder. The amount of oxygen present inside an oxygen cylinder is a very vital information when such cylinder is in use as life saving measure to a critical patient. In this paper, it is proposed to measure oxygen level using pressure and temperature sensors. Conditioned output of these sensors is connected as input to ARM microcontroller. ARM is programmed to display the actual pressure of oxygen cylinder in terms of numerical values and also in terms of fuzzy variables. A buzzer is also used as indicator to caution the attendants of patients whenever the level of oxygen is below a pre-decided value. The signal from the cylinder is further transmitted to the monitoring station through wireless communication module. Graphical display is used at monitoring station to indicate pressure of all oxygen cylinders to initiate actions like use cylinders which are in good conditions, replacement of empty cylinders with filled ones, etc. Experimental results show that, the aims set for this work are achieved satisfactorily.