Petroleum and chemical industries are considered the backbone of a nation whether it is developed or developing and act as a major contributor in revenue generation of the economy. As these industries fulfil the greater human need, the waste generated in these poses a huge problem of environmental pollution and human health. Sludge from petroleum is termed hazardous waste due to the presence of compounds like aliphatic hydrocarbons and polycyclic aromatic hydrocarbons (PAHs), PCBs (polychlorinated biphenyls), asphaltene, and nitrogen sulphur-oxygen components and heavy metals, lead, mercury, zinc barium, chromium, arsenic, etc. Petroleum sludge is generated during different processes, i.e. extraction, transportation, and cleansing. Similarly, sludge from chemical industries may be an explosive, oxidizing waste, organic peroxides waste, poisonous infectious substance, toxic and ecotoxic and also categorized as hazardous waste. There are various methods for treatment to minimize the toxicity. However, sludge accumulation in landfills or the environment is not suitable so there is a requirement to look forward to the reuse potential of sludge in a sustainable manner and environmental impact can be prevented. Therefore, in this chapter, streamlining of petroleum and chemical industries sludge is reviewed to utilize it in an environment-friendly manner.