A fluid filter assembly with sight glass provides an upper housing carrying a transparent sight glass for visualizing the interior of the filter assembly and fluids passing therethrough. A sight glass retainer secures the sight glass within the upper housing. A screen filter is carried between the upper housing and a mating lower housing. A fluid inlet port is defined in the upper housing above the screen filter and a fluid output port is defined in the lower housing below the screen filter. The sight glass retainer carries plural fluid deflectors and plural sight glass supports for fluid dispersion and fluid cooling. A pressurized air input communicating with fluid inlet port allows pressurized air to be injected into the assembly to force fluids through the screen filter and out of the filter assembly. A low pressure drain valve and a bypass valve are carried in the lower housing.