Plastics have undeniably played a crucial role in the technological and societal advancements over the past decades. However, the current linear consumption model and the reliance of the plastic industry on fossil carbon pose pressing environmental and economic challenges that cannot be ignored. In this context, poly(ethylene terephthalate) (PET) has emerged as one of the most studied plastics in the field of chemical recycling, given its extensive use in packaging and textiles, and its susceptibility to undergo solvolysis into its constituent monomers, which facilitates closed-loop recycling of PET waste. This study presents the validation of a first-of-its-kind continuous flow system that utilizes subcritical water for neutral hydrothermal processing of PET at three different reaction temperatures 250, 280 and 310 °C. Regardless of the processing conditions, PET underwent full conversion into monomers and low molecular weight esters like mono(2-hydroxyethyl) terephthalate (MHET) and bis(2-hydroxyethyl) terephthalate (BHET), with an approximate carbon distribution of 20 % and 80 % between aqueous and solid products, respectively. The product composition is strongly related to the processing conditions, with 77.5 % ethylene glycol and 94.2 % terephthalic acid recovered as monomers at 310 °C. Furthermore, solid products were repolymerized to assess the potential of reusing the heterogeneous precursor mixture as starting material for PET production. Results reveal that the solid products obtained at 250 °C yielded polymer chains with decomposition temperature, melting temperature, crystallinity, and average molecular weight (50.4 kDa) closest to commercial PET. These results underscore the potential of neutral hydrothermal processing in a future circular PET value chain.