In any compressor, refrigeration oil absorbs heat generated during its operation. Conventional refrigerators have hermetically sealed compressors that require lubricating oil having excellentthermal properties and provide good serviceability.The present experimental work focuses on compressor performance for three different oils like mineral oil ISO 32, PolyolesterISO 22 and poly alkylene glycol ISO 46. The amount of oil used is also varied to find the optimum value of oil used for better lubrication. The experiments are conductedona refrigeration system with capacity 165 liters to evaluate compressor work and performance parameters. The results show that the PAG oil ISO 46 and POE oil ISO 22 are the best choices when compare to Mineral oil ISO. The refrigeration system C.O.P is maximum for PAG oil ISO 46 and its optimum quantity is 200ml for 65 grams of R134a