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We had faced the problem in line-I of urea plant of oil in reclaimed urea solution from about one year including one annual shut down. All the heat exchanger of common section E-18A/B (distillation tower feed Exchanger), E-19A/B/C (Hydrolyser pre heater) were found badly choked from neem oil emulsion with water and sediments. The problem of foaming in distillation tower and reflux accumulator causing interruption in maintaining pressure and level of accumulator, due to which more requirements of steam in distillation tower i.e. energy loosed. The result also indicate that micro-sized oil particles is a favourable sorbent for non-polar substance such oily product. Finally we have installed activated carbon filter for removing neem oil from reclaimed urea solution. The project is running satisfactory and no foaming problems are observed till date and no heat exchanger efficiency down, no fouling/scaling on heat exchangers observed, about 90-98 % Neem oil removed by activated carbon filters according to temperature maintain by urea solution, flow rate of urea solution and tracing steam on activator carbon filter.