Peanut or groundnut( Arachis hypogaea L.) is an important source of vegetable oil in the world. Genetic enhancement for high yield and high oil content has greatly contributed to enhanced productivity of peanut and increased supply of peanut oil. Further improving oil content and quality of peanut is still crucial for increasing productivity of arable land and market competitiveness of peanut oil. Based on investigation among the peanut germplasm accessions including wild Arachis species,the oil content could be as high as 65%. Heterosis has been observed for oil content in hybrids derived from diverse crossing parents. Segregates with enhanced oil content have been obtained by pyramiding different genes or alleles with major and minor additive effects. Improved testing techniques for oil content in breeding lines with reduced cost have accelerated breeding progress for high oil content. SSR markers associated with oil content have been identified by association and linkage analysis. The stability of oil content in peanut across seasons and locations is highly associated with cold tolerance,high nutrition efficiency and drought tolerance. Recent progress on improving fatty acids in particular marker assisted backcrossing breeding has contributed to higher quality peanut oil and other products. High oil peanut lines with improved resistance to aflatoxin production have been developed. The wild Arachis species would be of great value for peanut breeding in increasing oil content.