The work proposed in this study will take results from cfr laboratory research of engine oil degradation and apply it to the army's requirement for an engine-mounted sensor. The basic concepts proposed use specific wavelength ranges in the infra-red to detect degradation patterns most specifically associated with the loss of oil quality in diesel engines. Phase i concentrates primarily on loss of dispersancy; phase ii will concentrate more on other areas such as oxidation, loss of zdp, and nitration. Preliminary results of measurements made on diesel engine oil samples taken during a mileage-accumulation study have supported the concept that it is possible to detect imminent dispersant failure by a means other than forms of oil degradation is a well established laboratory technique. The sensor concept is simple, and the output signals will be interpreted based on incorporation of accumulated knowledge from testing into a control algorithm.