Continuous electrolytic regeneration of iron (III) chloride etchant for shadow masks and lead frames of Fe-Ni alloys was investigated. The etchant enriched in total iron, Fe2+ and Ni2+ was continuously fed into an electrolytic cell to plate Fe and Ni on the cathode and a part of the etchant was taken into an absorbing tower where Fe2+ present in the etchant was oxidized to Fe3+ by chlorine generated on the anode. We found the etchant was maintained in a steady state, provided that it was fed at the rate determined by the mass-balance equations. High current efficiency (90%), despite low nickel content (11%) in the deposits, was obtained with a low concentrated electrolyte, while low current efficiency (40%) was reached with a high concentrated electrolyte despite high nickel content (33%). Chlorine was entirely consumed for oxidation of Fe2+ to Fe3+. From the above, it was shown that regeneration of the waste etchant together with recovery of the precious nickel could be realized by simple continuous electrolysis arranged in a closed system.