AbstractSpent pickling liquor (SPL) is an acidic waste with rich iron content from the stainless steel production industry. Reusability of SPL as a catalytic activity promoter in bentonite clay is crucial for the catalytic pyrolysis of various materials like biomass, coal, and waste plastics. For this aim, the bentonite catalyst activated with the SPL nomenclatured as SPL‐treated bentonite (SPLAB) catalyst was employed in the catalytic pyrolysis of lignite for an oil product with high yield and quality. The SPL‐treated bentonite catalytic pyrolysis oil (SPLABO) for the conditions of the final temperature of 600°C, heating rate of 10°C/min, and catalyst ratio of 15 wt% had a yield of 26.35 ± 1.14 wt% and good fuel properties in view of the higher heating value of 35.23 MJ/kg and density of 1076.4 kg/m3 at 20°C. Moreover, it has a rich chemical content by means of monocyclic aromatics and shorter chain alkanes compared with that of the thermal activated bentonite oil (TABO). Based on the chemical structure analysis results of the SPLABO and TABO comparatively, it was concluded that the SPL agent used as a catalytic activity promoter led to a significant increase in the catalytic activity of bentonite catalyst.