An in-tank filter bowl with a de-aeration shroud for a hydraulic or oil reservoir includes an outlet shroud surrounding the filter bowl outlet at a proximal end thereof and having a shroud fluid outlet at a distal end thereof with a larger opening than an opening of the filter bowl outlet. The outlet shroud may be formed as or include a diverging member surrounding the filter bowl outlet at a proximal end thereof and having a diverging member fluid outlet at a distal end thereof, wherein the member diverges from the proximal end to the distal end thereof. The outlet shroud may further include a central deflector positioned within the diverging member and combining with the diverging member to form an annular passage to the diverging member fluid outlet.