Numerical analysis has been carried out to investigate thermal characteristics for hydraulic system. Overall performance of hydraulic system is largely influenced by oil flow field with heat transfer. Especially thermal characteristics for operating conditions with high oil temperature caused by heavy load and continuous operation are dominant. Oil temperature variation with time in the system is predicted for various flow conditions. Local fluid flow fields at the pipelines, valves, and oil pump in the hydraulic system are considered with thermodynamic and transport properties such as density and viscosity. These results in the study can be applied to the optimal design of hydraulic system.