Widely shared videos on the internet are often edited. Recently, although Video Large Language Models (Vid-LLMs) have made great progress in general video understanding tasks, their capabilities in video editing understanding (VEU) tasks remain unexplored. To address this gap, in this paper, we introduce VEU-Bench (\textbf{V}ideo \textbf{E}diting \textbf{U}nderstanding \textbf{Bench}mark), a comprehensive benchmark that categorizes video editing components across various dimensions, from intra-frame features like shot size to inter-shot attributes such as cut types and transitions. Unlike previous video editing understanding benchmarks that focus mainly on editing element classification, VEU-Bench encompasses 19 fine-grained tasks across three stages: recognition, reasoning, and judging. To enhance the annotation of VEU automatically, we built an annotation pipeline integrated with an ontology-based knowledge base. Through extensive experiments with 11 state-of-the-art Vid-LLMs, our findings reveal that current Vid-LLMs face significant challenges in VEU tasks, with some performing worse than random choice. To alleviate this issue, we develop Oscars\footnote{Named after the Academy Awards.}, a VEU expert model fine-tuned on the curated VEU-Bench dataset. It outperforms existing open-source Vid-LLMs on VEU-Bench by over 28.3\% in accuracy and achieves performance comparable to commercial models like GPT-4o. We also demonstrate that incorporating VEU data significantly enhances the performance of Vid-LLMs on general video understanding benchmarks, with an average improvement of 8.3\% across nine reasoning tasks. The code and data will be made available.