This study employs a rigorous methodology to assess the condition of the hydraulic oil in a recently introduced mini skid-steer loader. The assessment is conducted through laboratory analysis, which adheres to a range of international standards. The objective is to provide accurate insights into the viscosity, particle count, and characterisation of the oil, along with thermographic data. The friction of oil is evaluated at specific time points: 0, 10, 100, 125, and 150 h of operation. This examination offers a comprehensive insight into the alterations in oil characteristics during a pivotal period when machine components are undergoing initial consolidation and abrasion to attain the factory-defined performance thresholds. The principal aim of this research is to provide valuable insights into the wear of oil and hydraulic system components through an in-depth analysis of a range of variables. Moreover, the investigation aims to ascertain the impact of this factor on the temperature elevation of system components and accessories to formulate enhanced technical guidelines for implementation. The main results indicate the presence of particles in the oil, resulting in a cleanliness code of 23/21/13, which exceeds the permissible threshold of 20/18/15 specified in ISO 11171. In addition, hydraulic oil shows a viscosity instability of more than 10% due to moisture absorption, leading to wear of mechanical components composed of iron, nickel, copper, zinc, and silicon. This deterioration is corroborated by thermographic evaluations, which reveal a considerable temperature increase in components such as cylinders and system accessories.