Kinesthetic illusion can be induced by observing repetitive movements of a particular body part from the first-person point-of-view; this is called KiNvis (kinesthetic illusion induced by visual stimulus). The purpose of the present study was to elucidate the characteristics of electroencephalogram (EEG) oscillations in sensorimotor area during KiNvis. We focused on the mu rhythm, typically oscillating at a frequency of 8–13 Hz and attenuated by the various motor processes. Seven healthy subjects participated in this study. Before EEG measurement, KiNvis was induced in all the participants during several days of training. Experimental conditions included motor execution of the right wrist flexion, motor imagery, KiNvis, and motor observation (observing the same movie as during KiNVIS; however, the screen position was placed anatomically incongruent). EEG signal was recorded from the left sensorimotor area during each condition. EEG spectra were estimated using fast Fourier transformation. The power of the mu rhythm during KiNvis, motor execution, and motor imagery significantly suppressed to be lower than that during motor observation respectively. These findings suggest that suppression effect of KiNvis on the mu rhythm was larger than simple motor observation, and was not inferior to motor imagery and motor execution.