Can You Install Oblivion Mods on PS3? No

No. The PS3 version of The Elder Scrolls IV: Oblivion does not support mods. Sony's closed architecture and lack of official modding tools prevent it.

Your Options

• Play on PC (Steam/GOG): Access 20,000+ mods via Nexus Mods, Wrye Bash, MO2—total conversions, graphics overhauls, questlines, UI fixes.
• PS3 Base Game: Still a fantastic 100+ hour experience with Shivering Isles & Knights of the Nine DLC (on disc or digital).
• Xbox 360: Also no mod support.

If modding is a priority, PC is the only platform for Oblivion (and Skyrim, Fallout 4, etc.).