During frying, the degradation of oil produces harmful compounds. Improper monitoring of oil-discard times in restaurants either risks the public health or causes financial losses to industries. Measuring the oil quality is a complex problem and an online sensor is needed. The process of frying reviewed includes moisture, heat and fat/oil transfer, crust formation and various structural, textural and chemical changes in the product, and degradation of frying medium. Some of the European nations and the U.S. have specific regulations against the use of deteriorated frying oils. Due to the absence of a suitable online frying oil quality sensor for restaurant situations, it is difficult to implement any regulation against the use of deteriorated frying oil. Based on various regulations, a model regulation to increase the safety and quality of fried foods is discussed. Background and requirements for developing an online sensor to measure frying oil quality are discussed. Other related areas reviewed in this article are factors affecting oil penetration and absorption by the food, surfactant theory of frying, analytical indices, quick tests and acceptability of frying oil.