By loading nanometer anatase onto exfoliated graphite with the sol-gel method, exfoliated graphite-TiO2 composite (EG-TiO2) can be prepared, which can adsorb oil and can also degrade oil. In a technologic condition for preparing EG-TiO2, the impregnated number of times is the most important factor to influence oil-adsorbing capability, that is, when the impregnated number of times increases, the amount of saturation-adsorbed oil decreases. The study of EG-TiO2 photocatalytic degradation of machine oil based on the weight-loss method and infrared spectrum method indicates that EG-TiO2 has obvious effect of photocatalytic degradation for machine oil. Its performance is superior to pure nanometer TiO2 powder because nanometer TiO2 in EG-TiO2 has three-dimension laminar structure and comparatively high adsorption capability.