Pakistan spends about $9.9 billion per year for the import of refined petroleum products including industrial and automotive lubricants. As lubricating oils are obtained from crude oil which is a finite source and keeping in mind the expected growth of the number of cars on the road and the setting up of new industries which will require a greater amount of lubricating oil, a need arises to recycle the lubricating oil. In the present work, regeneration of lubricating oil is carried out using a modified activated acid/clay method. The presented method is more energy efficient. Regenerated lubricating oil is well characterized by measuring viscosity, pour point, refractive index, pH, carbon residue, and flash point. The values are compared with commercially available lubricating oil and are found comparable within 5 % deviation. The proposed method has shown promising results for the efficient regeneration of used lubricating oil.