This study is used to explore the effect of a clay catalyst, like Halloysite, on the pyrolysis of Bakelite, showing the different issues of waste bakelite and providing an eco-friendly thermal process to convert the discarded Bakelite into valuable products. In this study, the pyrolysis of Bakelite is conducted to set the backbone of the study. Then, based on the pyrolysis of Bakelite, the catalytic pyrolysis of Bakelite with Halloysite clay is conducted to compare the pyrolysis kinetics and product yields for reactor design. The kinetic analysis is completed by using TGA data and Coats–Redfern modeling from 150–450 °C. The thermodynamic parameters are calculated by the Eyring equation from the TGA data. The TGA data of Bakelite and its blend with the different concentrations (2.5, 5, 7.5, and 10 wt%) of Halloysite clay were obtained at a heating rate of 20 °C/min over the temperature range of 30 to 1000 °C. The batch pyrolysis of the Bakelite in the presence of Halloysite clay is conducted at the optimum pyrolysis temperature for the pyrolysis of Bakelite. The pyrolytic oils produced are analyzed by Fourier transform infrared spectroscopy (FTIR) and gas chromatography–mass spectrometry (GC-MS). The weight loss at a heating rate of 20 °C/min increases from 56.49% to 62.57% with the addition of 5 wt% Halloysite clay. The degradation of Bakelite without Halloysite clay follows a 1.5th-order kinetic mechanism with an activation energy of 81.088 kJ/mol and an Arrhenius constant of 4.39×10¹² min–¹. However, with 5 wt% Halloysite clay, the activation energy decreases to 77.883 kJ/mol and the Arrhenius constant drops to 2.08×10¹² min–1, without changing the kinetic mechanism. The thermodynamic parameters, such as the changes in enthalpy and Gibbs free energy for the thermal degradation of Bakelite, decrease with the addition of Halloysite clay. The addition of 5% Halloysite clay to Bakelite increases the condensable products from 39.12% to 41.25%, while the gas fraction decreases from 30.36% to 29.51% and the residue from 30.52% to 29.24%. FTIR and GC-MS support the presence of alkanes, cycloalkanes, alkenes, cycloalkenes, aromatics, and oxygenated species in the pyrolytic oils. These results highlight that the addition of Halloysite clay with Bakelite during thermal conversion alters the kinetic analysis, improves the product yields, and varies the composition of the pyrolytic oil. The novelty of this study lies in demonstrating the catalytic effect of Halloysite clay on thermal degradation, kinetics, and product distribution for optimal reactor design.