A practical and efficient disposal method for chemical dechlorination of PCBs (polychlorinated biphenyls) in transformer oil was evaluated. The transformer oil containing PCBs was treated by the PEG 600 (polyethylene glycol 600) and potassium hydroxide (KOH) along with different reaction temperatures(25, 50, 100 and 150oC) and times(30, 60, 240 and 480 min). The best disposal efficiency of PCBs in transformer oil was attained under the experimental conditions of PEG 600 (2.5 w/w%)/KOH (2.5 w/w%)/150oC/4 hrs, showing completely removal of all PCBs containing 3-9 chlorines on two rings of biphenyl. In studying the reaction of PEG/KOH with PCBs, it confirmed that the process led to less chlorinated PCBs through a stepwise process with the successive elimination of chlorines.