Food adulteration is a global concern, drawing attention from safety authorities due to its potential health risks. Detecting and categorizing oil adulteration is crucial for consumer safety and food industry integrity. This research explores hyperspectral imaging (HSI) analysis to identify substandard oil adulteration at different stages. Using the non-destructive HSI Specim Fx 10 system, a method for precise and easy imaging-based fraud detection and classification was proposed. The 670 oil samples, including pure (Almond, Mustard, Coconut, Olive) and adulterated (Sunflower, Castor, Liquid Paraffin), were analyzed. The Savitzky-Golay filter preprocessed the images to remove noise and smooth spectral signatures. The oils were identified using various machine learning approaches, including Support Vector Machines, Logistic Regression, Linear Discriminant Analysis, Random Forests, Decision Trees, K-Nearest Neighbors, and Naïve Bayes with Linear Discriminant Analysis excelling in identification. Performance parameters, including precision, recall, F1-score, and overall accuracy, were calculated. The proposed method achieved a validation accuracy of 100%, outperforming numerous state-of-the-art approaches. This study introduces a robust pipeline for effective oil adulteration detection, offering a significant advancement in food safety and quality control.