The integration of medium-frequency transformer design and the harsh service environment raise higher demands for the medium-frequency insulation performance of epoxy composites. As epoxy composite's frequency response characteristics and sensitivity to moisture intrusion are still unknown, its application as the insulation materials of medium-frequency transformers under hygrothermal conditions is limited. This paper investigates the mechanism of moisture intrusion damage to the molecular structure of the epoxy resin matrix and its cross-linking points with the curing agent. The regularity of medium-frequency insulation performance degradation of epoxy composites after hygrothermal aging is studied. Results indicate that after 40 days of hygrothermal aging, moisture together with high temperature damaged the main chain of the epoxy resin and its cross-linking points with the curing agent, resulting in a 23 °C decrease in the glass transition temperature and an 82 % decrease in cross-linking density of the epoxy composite. Moisture ionization and the increase of carriers due to epoxy resin hydrolysis lead to an increase in the amount of space charge. The temperature rise caused by dipole steering polarization facilitates the formation of internal conductive pathways in the epoxy composite, resulting in a 73 % decrease in the medium-frequency breakdown strength and a four-order magnitude decrease in the medium-frequency volume resistivity of the epoxy composite. This study can guide the insulation design of high-reliability medium-frequency transformers.