Abstract: A novel arrangement of a capacitive oil level and temperature sensor specifically provided to be mounted to a drive axle housing of a motor vehicle, is disclosed. The sensor comprises an L-shaped hollow body allowing for a simple fit in current production axles. The L-shaped hollow housing of the oil level sensor comprises a pair of mutually perpendicular legs. A substantially vertically oriented first leg includes an oil level detecting capacitor and adapted to be at least partially immersed in an oil reservoir of the axle housing. An oil temperature detecting thermistor is also disposed within the sensor housing. A second leg is substantially horizontally extending from the axle housing and contains an electronic sensor circuitry electrically coupled to the oil level detecting capacitor and to the thermistor, and is adapted to generate oil level and temperature output signals.