For revealing diethylene glycol (DEG) formation in poly(ethylene terephthalate) (PET) synthesis, this research focused on finding the stage most critical for DEG formation. It is found that the esterification stage was the most critical stage for DEG formation during production of PET through the direct esterification process. In addition, the kinetics of the formation of DEG (ether bond), which is mainly produced from hydroxyl end groups of ethylene glycol (EG) and bis-hydroxyethyl terephthalate (BHET) oligomer, was investigated. The results show that the reactivity of BHET-OH functional group is greater than that of EG-OH functional group in the reaction to produce ether bonds.