The extent of change of soil property by the dumping of oil sludge coming out fromlubricant oil reprocessing industrieswas studied. The soil samples considered were under long duration impact (10 years of exposure to oil sludge), short duration impact (5 years of exposure to oil sludge) with or without amendment to observe recovery of pollution effect. The effect of oil sludge was evaluated on the basis of oil content of the contaminated soil. With increase of the exposure of oil sludge there was increase in the content of oil in the soil. Soilwas changing towards acidic due to oil sludge. Reduction of microbial population with duration of exposure was significant. Lime treatment was found to recover the soil from oil sludge effect.