AbstractDisulfide oil (DSO) is produced as a hydrocarbon sulfide waste stream in liquefied petroleum gas and condensate sweetening units in refineries and can cause acute environmental pollutions. In this article, a simple process composed of two units including a distillation unit and a hydrodesulfurization (HDS) unit is proposed to overcome the disulfide oil problem in refineries. The commercial HDS catalyst is CoMo type that is applicable for hydrotreating of DSO. This catalyst is developed by different licensors such as Axens. The high sulfur content in DSO feed causes an increase in heat of reaction and partial pressure of H2S in HDS reactor. By using special design techniques such as reactor quenching or increase H2/oil ratio, the reactor can be designed properly for DSO feed. The waste stream DSO is converted to valuable products including: dimethyl disulfide (DMDS), sweet gas and condensate. A process flow diagram consisting of distillation and HDS units together with amine treating and hydrogen compression system is proposed and simulation of the process is carried out by Aspen plus: The distillation unit separates DMDS and the HDS unit removes sulfur from remainder DSO. Capital cost estimation methodology is based on bare module factor. The capital and operating cost of the process are estimated for a real capacity of DSO just produced in south pars of Iran. Financial parameters and sensitivity analysis show that the process is feasible both technically and economically with an internal rate of return of 73.6%. The proposed process is accepted environmentally by converting a harmful waste to saleable products.