Spent bleaching earth (SBE) is a byproduct generated during the process of refining edible oil. Due to its flammability and high organic content, it is categorized as hazardous waste in many countries. However, researchers have been exploring ways to convert this waste material into valuable products. In this study, residual oil from SBE was extracted using n-Hexane. The de-oiled SBE was then activated with acid and heated at 500 °C for 1 hour in a muffle furnace to produce two different materials, namely DRSBE and RSBE. These materials were characterized using XRD, TGA, and FTIR. Both DRSBE and RSBE were utilized for removing coloring pigments from degummed and neutralized canola oil, and it was found that DRSBE was more effective in this regard. The removal percentage of coloring pigments was 71.06% and 40.52% for DRSBE and RSBE, respectively. Additionally, the soap contents of bleached canola oils were decreased, and the phosphorus contents of oils were lowered to 80%. However, the saponification and iodine values of oils remained unaffected.