Engine oil degradation critically influences the performance, efficiency, and longevity of internal combustion engines. Conventional mileage or time-based replacement schedules often result in premature oil changes or delayed servicing, both of which compromise engine health and increase costs. This review examines recent advances in real-time oil condition monitoring and evaluates the feasibility of a low-cost microcontroller-based system that integrates physical sensors with machine learning models for continuous on-board oil health assessment. Drawing on established techniques from industrial lubrication monitoring, we propose an experimental framework that leverages electrical engineering principles, including sensor interface, analog front-end design, signal acquisition, and embedded AI deployment to enable accurate, affordable, and scalable oil health diagnostics. The review highlights opportunities for innovation in embedded systems and electrical engineering design, positioning AI-driven monitoring as a practical solution for predictive automotive maintenance.