Transformer oil with a petroleum basis has long been used in transformers as insulation and cooling. The environmental concern of the current liquid insulating technique is how spent oil samples are disposed of after extensive use. Due to transformer oil's non-biodegradable composition, which can hurt and contaminate the environment, there is difficulty with disposal. A Nano Particle based Used Transformer Oil Processing Method (NP-UTOPM) is suggested in this research to reuse the used transformer oil in the battery. This work examines the effects of activated bentonite and carbon absorbents in recovering the qualities of used transformer oil by investigating the re-usage features of used transformer oil samples after reclamation treatment. 50ml of used transformer oil is utilized for the reclaiming process, along with separate mixtures of 1%, 3%, and 5%Nano Particles (NP) and blended combinations of two absorbents. According to international regulations, oil sample characteristics such as breakdown voltage, viscosity, dielectric dissipation factor, electrical conductivity, density, specific resistance, surface tension, and temperature properties are tested before and after restoration. The sample of recycled oil is used again as a liquid insulator in batteries.