Abstract: Two methods for preparing polyester-polyether polyols from polyalkylene terephthalates are disclosed. The first method comprises reacting the polyalkylene terephthalate with a solution of low molecular weight polyols and ethoxylated methyl glucoside at a suitable temperature, generally between about 370.degree. and 450.degree. F., and under vacuum distillation.The second method comprises dissolving the polyalkylene terephthalates in a mixture of low molecular weight polyols at a suitable temperature and under vacuum distillation to form the polyester polyol component. The polyether polyol component is made by reacting ethoxylated methyl glucoside with an alkylene oxide in the presence of a suitable catalyst. The final product is made by blending about 80-95% by weight of the polyester component with about 5-20% by weight of the polyether component.