In this paper, the performance of several annealing methods on three retired cables and the annealing effects on the improvement in the thermal and electrical properties of cross-linked polyethylene (XLPE) insulation were discussed. The cable insulation layer was peeled, and the peels near the inner semi-conductive layer were used as the test samples. Isothermal treatment and heat recycling treatment were performed at temperatures of 85, 90, 95, and 100 • C, and the temperatures were held in the heat recycling treatment for 8, 16, and 24 h, respectively. Each heat recycling treatment was repeated 20 times, and the duration of the isothermal treatment was the same as that for the heat recycling treatment with a 24 h temperature holding hour. Then, Fourier transform infrared spectroscopy (FTIR) and differential scanning calorimetry (DSC) were performed, and the dielectric spectrum, DC conduction current, and dielectric breakdown strength E B were measured. The results showed that damage involving molecular changes is linearly related to the cable service year. As the annealing temperature increases, the melting range and electrical conductivity decrease; the melting point, crystallinity, lamellar thickness, and dielectric breakdown strength increase; and the optimal values appear for the samples annealed at 95 • C. With an increased temperature holding hour, the peels annealed at 95 • C exhibit a decreased melting range and electrical conductivity and an increased crystallinity, melting point, lamellar thickness, and dielectric breakdown strength. As a result, the two different treatments are verified to effectively improve the thermal and electrical properties for the XLPE as early research on cable rejuvenation by heat treatment.