Neodymium and dysprosium can be efficiently separated by solvent extraction, using the neutral extractant Cyanex 923, if the conventional aqueous feed phase is largely replaced by the green polar organic solvent polyethylene glycol 200 (PEG 200). While pure aqueous and pure PEG 200 solutions in the presence of LiCl or HCl were not able to separate the two rare earth elements, high separation factors were observed when extraction was performed from PEG 200 chloride solutions with addition of small amounts of water. This addition of water bridges the gap between traditional hydrometallurgy and novel solvometallurgy and overcomes the challenges faced in both methods. The effect of different variables was investigated: water content, chloride concentration, type of chloride salt, Cyanex 923 concentration, scrubbing agent. A Job plot revealed the extraction stoichiometry is DyCl 3 •4L, where L is Cyanex 923. The McCabe-Thiele diagram for dysprosium extraction showed that complete extraction of this metal can be achieved by a 3-stage counter-current solvent extraction process, leaving neodymium behind in the raffinate. Finally, a conceptual flow sheet for the separation of neodymium and dysprosium including extraction, scrubbing, stripping, and regeneration steps was presented. The nonaqueous solvent extraction process presented in this paper can contribute to efficient recycling of rare earths from end-of-life neodymium-iron-boron (NdFeB) magnets.