The present disclosure relates to a method of decomposing a phenolic by-product, including: a step of feeding and thermally cracking a phenolic by-product stream to and in a decomposition apparatus, recovering an active ingredient from a top discharge stream, and discharging a high-boiling substance through a bottom discharge stream; a step of pressurizing each of a side discharge stream of the decomposition apparatus and a bottom discharge stream of the decomposition apparatus; a step of mixing the pressurized side discharge stream of the decomposition apparatus and the pressurized bottom discharge stream of the decomposition apparatus with each other to form a mixed stream; and a step of passing a part of the mixed stream through a reboiler, circulating the part of the mixed stream to the decomposition apparatus, and discharging a residual mixed stream.