Citrus oil is an essential oil present within the rind of wall of a citrus fruit. In contrast to most essential oils, it is extracted as a byproduct of juice extraction by centrifugation, producing cold pressed oil. It is found in all citrus fruits like lemon, orange, sweat lime etc. In the present investigation orange (citrus sinensis) peels is used for the extraction of citrus oil. India along with Brazil, China and the United States of America accounts for almost half the orange production in the world. As orange is one of the most common fruits with a lot of nutritional values, it is most consumed for its dietary benefits. After extraction of juice, the orange peels are treated as waste and lead to environmental pollution due to improper disposal can be used for the extraction of citrus oil. This paper focuses on improved steam distillation, where the orange peels are preheated before subjecting to distillation. The citrus oil composed of around 95% D- limonene which has many applications ranging from food flavouring agents to cosmetics.