Olive oil can be substituted for vegetable oil in baking, cooking and frying. Olive oil has a stronger flavor than vegetable oil, which can change the taste of the food.
Fine Cooking notes that olive oil can be utilized in baking, but it's best used in baked goods with strong, warm flavors such as spiced bread or chocolate cake. If a recipe calls for half a cup of vegetable oil, half a cup of olive oil can be substituted.
Olive oil can be used instead of vegetable oil in salad dressings. Cooks can also use it to replace vegetable oil when sauteing foods or roasting vegetables.
Olive oil is suitable for frying foods, though extra virgin olive oil should be avoided when shallow or deep frying. Most olive oils have a smoke point similar to other vegetable oils such as canola, soy and safflower at or above 400 degrees Fahrenheit. However, the smoke point of extra virgin olive oil can range from 200 to 400 degrees Fahrenheit.