The purpose of this paper is to determine the effect of conductive (ZnO) semiconductive (CeO2), and insulating (Al2O3) based nanomaterials on liquid insulator dielectric strength. A comparison of nanoparticles impact on insulating oils has been done extensively. Nanoparticles are synthesized by sol–gel method, and after the synthesis of nanoparticles to get the crystallite size of each NP, X-ray Diffraction Analysis (XRD) is done to get an idea about the surface morphology of NPs Scanning Electrode Microscopy (SEM) is done. Nanofluids are prepared by a two-step process; concentrations taken are 4 mg, 8 mg, and 12 mg, respectively, in 400 ml of mineral oil. The test demonstrates that the mineral oil with nanoparticles has significantly higher AC breakdown Voltage and there is also improvement in dissipation factor by incorporating nanofluid in mineral oil.