Palm oil is widely used in food manufacturing due to its high oxidative and thermal stability. However, prolonged use and exposure to high temperatures lead to an increase in its acid value (AV), accelerating oxidation, thermal degradation, and potential fire hazards. This review systematically examines the effects of AV changes on the thermal stability, oxidative properties, and fire risk characteristics of palm oil. Existing experimental studies indicate that increased AV reduces the smoke point, flash point, and ignition temperature, contributing to greater fire risks. Furthermore, oxidative degradation results in the formation of hazardous by-products, such as polycyclic aromatic hydrocarbons (PAHs), which pose health risks. This study provides a comprehensive analysis of experimental approaches used to evaluate the combustion characteristics of palm oil and highlights key gaps in current research. Finally, recommendations for fire prevention strategies and future research directions are presented to mitigate fire hazards associated with used cooking oils.