A transformer simulation system and a measurement method for setting value simulation are disclosed. The transformer simulation system includes an oil tank, a heating device, a pump body, a first oil pipe, a second oil pipe and a first flow sensor. The heating device is disposed in the oil tank. The oil tank is provided with a first inlet and a first outlet, the first outlet is connected to the first oil pipe, and the first inlet is connected to the second oil pipe. An end of the first oil pipe away from the oil tank is a first mounting end for being connected to an oil inlet of a gas relay, and an end of the second oil pipe away from the oil tank is a second mounting end for being connected to an oil outlet of the gas relay. The pump body is connected to the first oil pipe or the second oil pipe, and the first flow sensor is disposed in the first oil pipe. The above-described transformer simulation system can measure the oil flow velocity, that is the setting value of the gas relay, and the type of the insulation oil in the oil tank can be replaced, then the corresponding setting value of the gas relay is obtained, so as to prevent the original gas relay from not playing the role of the protection due to a different property of the insulation oil.