Owing to its unprecedented and complete overhaul of the default vanilla leveling system, Sir Frederik's Oblivion XP is now considered by many, as the best mod out there for improving game play and leveling. It provides players with an unprecedented leveling path that lets them tackle and complete all quests in the game with ease, as well as gain XP for completing quests in the game and obtain various other benefits. The mod also completely changes the default leveling system in the game and makes it completely different from the vanilla version. All quests are designed to be played in a very vanilla style, with quests using the same objectives and game play features.

With this mod, players can use the vanilla leveling system to their advantage, by gaining skill points that can be spent on any skill tree. Skills can then be spent on perks that improve abilities for each skill type. Perks include passive skill point boosts when players level up, and special quests that grant unique items upon completion.

Skills and perk trees can be changed by spending additional skill points and can also be adjusted for both experience and damage dealt. Skills are no longer static, instead they gain in power based upon their rank in a particular tree. Perks can be spent on several different trees, depending on the need of the player and their chosen class. Some of these trees provide extra damage while others improve rested XP and speed.