An improved system and method for using polyethylene glycol (PEG) as a processing fluid additive for safely and effectively treating water-wet hogout propellant as well as any other water-wet propellants, explosives and hazardous wastes (solids and liquids) to make them compatible with the MSO process. The method includes the step of applying liquid PEG to the hazardous waste to create a slurry or feedstock that when fed directly into the MSO reactor vessel prevents the occurrence of smelt-water explosions due to the accumulation of dangerous levels of sodium chloride, and/or sodium sulfide in the molten salt bath. The PEG possesses special qualities that make it ideal for this purpose. It is a low cost, low viscosity, commercially available, non-hazardous (per OSHA standards), water soluble, low toxicity chemical that burns cleanly leaving little or no residue.