In recent years, transparent display is an emerging topic in display technologies. Apply in many fields just like mobile device, shopping or advertising window, and etc. Electrowetting Display (EWD) is one kind of potential transparent display technology advantages of high transmittance, fast response time, high contrast and rich color with pigment based oil system. In mass production process of Electrowetting Display, oil defects should be found by Automated Optical Inspection (AOI) detection system. It is useful in determination of panel defects for quality control. According to the research of our group, we proposed a mechanism of AOI detection system detecting the different kinds of oil defects. This mechanism can detect different kinds of oil defect caused by oil overflow or material deteriorated after oil coating or driving. We had experiment our mechanism with a 6-inch Electrowetting Display panel from ITRI, using an Epson V750 scanner with 1200 dpi resolution. Two AOI algorithms were developed, which were high speed method and high precision method. In high precision method, oil jumping or non-recovered can be detected successfully. This mechanism of AOI detection system can be used to evaluate the oil uniformity in EWD panel process. In the future, our AOI detection system can be used in quality control of panel manufacturing for mass production.