This paper presents the design, development and experimental validation of an ultrasonic sensor system for the detection of adulteration in edible oil. Variation of ultrasonic wave propagation characteristics like attenuation coefficient, reflection coefficient and velocity of propagation in pure and adulterated oil were used for developing the algorithm to detect the adulteration. Measurement cell was designed for operating ultrasonic transducer at 1 MHz using COMSOL 4.4. Artificial Neural Network (ANN) based algorithm was also developed for improving the efficiency of the sensor system. It is found that this system can detect adulteration with an accuracy of 99.53% for sunflower oil added in pure coconut oil, whereas 98.82% for palm oil added in pure coconut oil. © School of Engineering, Taylor’s University.