Bentonitic material from South Aswan, Egypt was evaluated in terms of mineral-ogy and chemical composition as bleaching clay in refining of transformer oil before and after acid activation and thermal treatment followed by acid leaching using HCl and H2SO4 for different contact times. Structural modification and refining power of bento-nite were investigated during modification by means of X-ray diffraction and infrared spectroscopy. The results revealed that the activated bentonite could be used for refining of transformer oil. The oil parameters such as; dielectric strength, viscosity and flash point had been improved. The dielectric breakdown strength of used oil increased from 29 kV for used oil treated with unactivated bentonite to 74 kV after treatment with activated bentonite. Kinematic Viscosity changed from 19 to 11 mm2 /s after treatment with activated bentonite. However, flash point achieved 149 ºC.