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The use of vegetable oils as fuels and as lubricants has been known for many years. The current environmental awareness has provided a new impetus for developing the so called “green” products by various industries. Most have selected vegetable oils that are more naturally [oxidatively] stable and are suitable for use in industrial applications. Rapeseed, in particular, has been investigated by many European and American companies for development of industrial lubricants. The purpose of this study, however, has been to investigate the potential utilization of soybean oils as an industrial hydraulic fluid. The results have shown that soybean oils, like other vegetable oils, present good lubricating and wear protection performances. Lack of desired oxidative stability and the subsequent polymerization of the used oil, however, appear to be the main concerns. Three approaches have been selected to address this concern.