The invention provides a device and method for measuring the oil consumption of an engine. The measuring device is composed of an oil filling tank, an observation window, an oil drain valve, an oil collecting tank, a vent pipe, a lifting platform, a camera, an electronic scale and the like. During measurement, when the working condition is in stable operation, the engine oil liquid level is relatively stable, and an oil level line which is flush with a valve opening in a visual oil level pipe is used as the basis reference. On the basis of the variation of the relative quality of engine oil added into the engine within a testing time period, the oil consumption of the engine within the testing time period is tested, and the relative variation of the oil weight is accurately measured through the accurate measurement and the zero clearing operation of the electronic scale. Meanwhile, measurement is conducted under the state that the engine is not stopped, the influence of operation condition difference of the engine and the oil storage amount difference of a filter under different working conditions on the oil consumption measurement result is avoided, and the measurement precision of the oil consumption of the engine is improved. In the testing process, it is guaranteed that the oil in the engine is placed above the normal operation liquid level, and the engine is prevented from being damaged.