Simultaneous glycolysis and neutral hydrolysis of waste PET flakes obtained from grinding post-consumer bottles was carried out in the presence of xylene and an emulsifier at 170 A degrees C. The product was separated from ethylene glycol (EG), water, and xylene by filtration, and was extracted by water at boiling point thrice. The remaining solid was named water insoluble fraction (WIF). The filtrate was cooled to 4 A degrees C, and the crystallized solid obtained by filtration was named water soluble crystallizable fraction (WSCF). These fractions were characterized by acid value (AV) and hydroxyl value (HV) determinations. WSCF and WIF were used for preparation of the water-reducible alkyd resins. Three long oil alkyd resins were prepared from phthalic anhydride (PA; reference alkyd resin) or depolymerization product of the waste PET (PET-based alkyd resin), glycerin (G), fatty acids (FA), and glycol (EG; reference alkyd resin) or depolymerization product of the waste PET (PET-based alkyd resin). Film properties and thermal degradation stabilities of these alkyd resins were investigated. Physical properties (drying times and hardness) and thermal degradation stabilities of the PET-based alkyd resin is better than these properties of the reference alkyd resin.