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This paper is a review of the development of a standard flammability test method for hydraulic fluids since the 1970s. Over the past years, the test methodology for qualifying hydraulic fluids has been transformed from a qualitative assessment to a quantitative and model based assessment. The present standard test method deals with the calorimetric measurement of heat release rate of a highly atomized spray fire, fire point temperature measurement, and the determination of adiabatic flame temperature utilizing an existing NASA Combustion Equilibrium and Application Code. In this paper, we have emphasized on the detailed development of evaluating water-based hydraulic fluids.