An oil identification system is disclosed. The oil identification system includes a parameter sensor coupled to at least one of an oil pan or an oil flow path of a machine. The oil identification system also includes an identification module. The identification module is also configured to receive a signal indicative of movement of charged particles in the oil of the at least one of the oil pan or the oil flow path. The identification module is further configured to determine a resistivity of the oil in the at least one of the oil pan or the oil flow path. The identification module is configured to compare the resistivity of the oil with resistivity data readings. The identification module is also configured to identify a type of oil in the at least one of the oil pan or the oil flow path based on the comparison.