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Thermosyphon is an on line transformer oil filtration system having some absorbents and mounted in the flow line of transformer oil out side the main tank of transformer. In many industrially advanced countries this system is frequently used for bigger transformer of ONAN (Oil Natural Air Natural) or ONAF (Oil Natural Air Forced) cooled. Although some Indian transformer manufacturers are aware about it however there are some grey areas like type and quantity of absorbent, design of thermosyphon fixture, maintenance schedule and doubt about dissolution of absorbent with oil, etc. TECHNOLOGY DEVELOPED ATElectrical Research & Development Association, Makarpura Road, Vadodara-390010(A Dept. of Science & Technology Sponsored Project)