FeCl3 bearing etching solution is mainly used for etching of metals used in shadow masks, PCBs and so on. Due course of Invar alloy etching process the FeCl3 bearing etching solution get contaminated with Ni2+ which affect adversely the etching efficiency. Hence, FeCl3 bearing etching solution discarded after several cycle of operation causes an environmental and economic problem. To address both the issues the etching solution was purified through solvent extraction and remained Ni2+ recovered by wet chemical reduction using hydrazine. For optimum Fe3+ extraction efficiency, various extraction parameter were optimized and size and morphology of the recovered pure Ni powder was analyzed. The reported process is a simple process to purify and recover Ni from industry etching solution.