Soluble oils (cutting oils) in aqueous solution are used extensively in the engineering and metal working industries, as coolants, metal forming fluids, and/or lubricants. Hysol-X is a general-purpose cutting oil used in 110% concentration in aqueous solution. This paper investigates demulsification of soluble-oil-water emulsion using electrocoagulation with aluminum electrodes. It examines the current efficiency and the pH variation of the system due to electrocoagulation and the effect of pH of the oil-water emulsion, current density, and temperature on the demulsification process. A simple first order kinetics fits the experimental data at a constant value of current density. The optimum pH and current density were found to be 6.50 and 138.8 A/m2, respectively. Apparent electrode current efficiency was found to be 115.5%. Temperature has significant effect on emulsion stability and solution pH. At a lower temperature of 20 degrees C or a higher temperature of 60 degrees C, the turbidity (or oil) removal is found to be very high. More than 99% oil separation is achieved in 3h at 20 degrees C. The residual aluminum concentration in the treated water at an initial pH 6.5 is found to be 0.001mg/l, well below the statutory discharge standard value.