IN THE FIRST STAGE OF A CONTINUOUS PROCESS OILY SLUDGES ARE MIXED WITH LIGHT HYDROCARBONS DIFFERING SUBSTANTIALLY IN SPECIFIC GRAVITY THEREFROM TO SEPARATE THE SLUDGES INTO AN OIL-HYDROCARBON PHASE A WATER-WAXY SOLIDS PHASE. THE OIL-HYDROCARBON PHASE IS HEATED TO A TEMPERATURE ABOVE THE CRITICAL TEMPERATURE OF THE LIGHY HYDROCARBONS TO REMOVE THE LIGHT HYDROCARBONS WHICH ARE THEN RECYCLED FOR FURTHER USE. THE WATER-WAXY SOLIDS PHASE IS TREATED TO OBTAIN WATER REDUCED CHEMICAL OXYGEN DEMAND WHICH CAN BE DISCHARGED IN RECEIVING BODIES OF WATER WITHOUT POLLUTING THE SAME. THE WAXY SOLIDS-WATER SLURRY WHICH REMAINS IS, IN THE SECOND STAGE OF THE PROCESS OF THIS INVENTION, DIRED AD THE RESULTING DRY WAXY SOLIDS ARE TREATED WITH A LIGHT ORAMITIC SOLVENT SUCH AS BENZENE, TO YIELD A SOLUTION OF WAX AND THE AROMATIC SOLVENT AND WAX-FREE SOLIDS. AFTER THE AROMATIC SOLVENT WAX SOULTION IS STRIPPED TO REMOVE THE AROMATIC SOLVENT, A VALUABLE WAX PRODUCT REMAINS. IN A FINAL STEP, THE WAX-FREE SOLIDS ARE HAETED TO REMOVE THE LAST TRACES OF THE AROMATIC SOLVENT THEREFROM YIELDING DRY, HYDROCARBON-FREE, SOLIDS WHICH ARE SUITABLE FOR A WIDE VARIETY OF USES, SUCH AS, FOR EXAMPLE, FOR LAND FILL.