In the modern days, Internet of Things (IoT) is smart communicating approach and creates an energetic impression in future of automobile industry. The advancement of IoT innovation in each field can be joined with the rising occasions setting off a requirement for a superior human way of life and its applications are vast and innumerable. One such application can be implied for the automobile industry to real time monitor the engine lubricant because in India, automobile mechanics still use conventional techniques of engine lubricant supervision. So in this paper, we present, an IoT technology based a real time Engine Oil Monitoring (EOM) System for diagnosis of engine lubricant. The main objective of this research paper is to reduce the human effort and to provide a smart sensing approach in automobile industry for maintaining real time engine oil conditions. EOM system is designed with the help of Arduino Nano with sensor devices named as Light Dependent Resistor (LDR) sensor for oil quality, LM35-Temperature sensor for temperature and Ultrasonic Sensor for oil level measurement in engine. Real time testing results shown in the connected display unit and experimental results of proposed EOM system using IoT network provides an efficient diagnosis results. EOM system is working properly that is observed in the experimental analysis section for two different scenario such as 10W-50 4T Scooter Engine Oil-Honda Activa 125 (1L) and 10W-30 Synthetic Engine Oil for Petrol Cars (3.5 L).