Composite insulators are widely being used in power industry to alternate traditional porcelain-based insulators for their advantages, including better pollution performance, low maintenance cost, light weight, compact line design. However, due to the short application history and experience, the degradation of composite insulators in natural environment is a big concern for the power utilities. The knowledge on the degradation of composite insulators is being studied world wide. The methods to assess the working conditions of composite insulators are being studied and created. In Queensland University of Technology (QUT), the approach based on chemical analysis methods was first developed. The work in this thesis based on the previous research work is focused on correlating electrical characteristics with chemical analysis results of the composite insulators and physical observations results. First,the electrical characteristics of composite insulators were presented and analysed, including leakage current, cumulative current, peaks of leakage current, the statistic results of the leakage current. Among them, the characteristics of leakage current were mainly studied. The shape of waveforms was found to relate to the degree of discharge activities of the composite insulators. The waveforms analysed by FFT revealed that the odd harmonic components became obvious during the discharge activities. The correlations between the electrical characteristics of composite insulators and chemical analysis results showed that the composition of composite insulators plays significant roles in terms of electrical performance. The oxidation index (O.I.) and the ester/ketone ratio (E/K) differentiated the different degradation reasons of the composite insulators in the test conditions. Finally, the thesis presents one approach, which aims to assess the surface conditions of composite insulators in an easy manner and in short time.