The invention under consideration describes a novel method of processing DDGS (Dry Distillers Grain with Soluble) for extraction of the oil content. In the process under consideration, the DDGS (Dry Distillers Grain with Soluble) are heated to 70-75 C for softening, then passed thru a pair of smooth rolls for converting the particles of various sizes into thin flakes. Then from warm flakes of DDGS (Dry Distillers Grain with Soluble) are converted into collets, by passing these through an Expander. The collets are then cooled to 55-60 C by means of cooling air. Further, collets are sent to a solvent extractor wherein the solvent (food-grade hexane) is sprayed on top of the collets bed as the solvent percolates thru the bed, it absorbs oil, and the solvent-oil mixture (called "miscella") is collected. The miscella is then sent for distillation to separate the oil and solvent and the de-oiled material, which is soaked in solvent is sent for desolventisation. The distillation is accomplished in a series of heaters and flashers, with a steam-stripping column as a "finisher". Thus, now the oil is free of the solvent, and the de-oiled material (called the "Meal") is ready as animal feed.