Peanut oil is a vegetable oil that comes from peanuts and has many uses, including cooking, in pharmaceuticals, and as a skin treatment: Cooking Peanut oil is a common ingredient in many cuisines, including American, Chinese, Indian, African, and Southeast Asian. It has a high smoke point, so it's often used for frying. Peanut oil has a neutral flavor, but roasted peanut oil has a stronger peanut taste. Pharmaceuticals Peanut oil is used as an inactive ingredient in drug products and as an active ingredient in over-the-counter products. It's used as a solvent for vitamins and hormones, and as a vehicle for topical preparations. Skin treatment Peanut oil can be used to treat dry skin, scalp crusting and scaling, arthritis and joint pain, and constipation. Nutritional value Peanut oil is rich in fatty acids, vitamins, and phytosterols. It's high in monounsaturated and polyunsaturated fats, and low in saturated fat. It's also rich in vitamin E, an antioxidant that may help prevent chronic disease. Peanut oil is also known as groundnut oil or arachis oil.