An encoder having an oil mist prevention structure includes: an encoding body including a cylindrical base, a light emitter and a secondary encoding piece; an oil-containing bearing received and fixed in the cylindrical base; a shaft penetrating the oil-containing bearing to protrude beyond an end surface of the bearing; a rotary disk fixed onto the shaft to cover one side of the secondary encoding piece; a light acceptor fixed to the cylindrical base to correspond to the light emitter and the secondary encoding piece, thereby receiving the signals emitted by the light emitter; and an oil mist prevention structure including a mask integrally formed with the shaft and exposed beyond an end surface of the bearing and a ring extending from the mask for covering an outer periphery of the bearing.