Diglycidyl ether is a chemical compound used as a reactive diluent for epoxy resin. Other uses include treating textiles and stabilizing chlorinated organic compounds. It is extremely toxic, and can prove fatal or cause permanent damage if inhaled or consumed orally. Diglycidyl ether is a chemical compound used as a reactive diluent for epoxy resin. Other uses include treating textiles and stabilizing chlorinated organic compounds. It is extremely toxic, and can prove fatal or cause permanent damage if inhaled or consumed orally.