Abstract: The subject invention relates generally to a novel method of recycling gelatin-based encapsulation waste material and, more specifically, to a process for the recovery and purification of gelatin and softening agents therefrom. In the preferred embodiment, deionized water is added to the waste material thereby forming an aqueous solution of gelatin and glycerine dispersed within the remaining oil and residual active-ingredient components of the waste material. Extraction methods are employed under specific conditions to effect separation of the bottom aqueous phase from the upper oil phase. The lower phase is hot filtered to remove any remaining traces of oil or other contaminants and the filtrate is then charged to a concentration vessel adapted for vacuum distillation. The water solvent is thus removed under specific thermal and atmospheric conditions until the desired concentration of gelatin and glycerine is achieved.