This paper mainly researches transmission efficiency (TE) of mechanical transmission in relation to the temperature of lubricating oil. Firstly the formula of TE is calculated about the kinematic viscosity of lubricating oil, then analyze the relationship between kinematic viscosity and temperature of lubricating oil, and finally the formula of TE which is related to the oil temperature is put forward. In order to verify the theoretical formula, the test bench for mechanical transmission is designed, which is used to research the N109 transmission of one mini car. The bench can be used to measure the curve of TE under different speed , load and lubricating oil temperature. The optimum operating temperature of the transmission is obtained by analyzing the measured data and theoretical calculation results. The test bench adopts 2 AC asynchronous motors to respectively simulate the driving and load performance of a vehicle. In this test bench, the control software of host computer is programmed by C++, the slave computer adopts PLC to control the S120 control cabinet which regulates the rotational speed of driving motor(DM) and the torque of load motor (LM).