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Large quantity of dehydrated oil sludge, generated in the disposal process of oil-containing sewage in Shengli oilfield, needs to be rendered harmless to human and to the environment. Bioremediation has been accepted as an important method for the treatment of oil sludge by employing indigenous or extraneous microbial flora. The bioremediation of a dehydrated oil sludge of 960 m3 in volume was carried out in a prepared bed in Binyi oil-containing sewage disposal station, Shengli oil fields, China. Four different treatments were made to study the impact of certain process parameters on the bioremediation efficiency. Of the oil contaminants, 52.75% was degraded within 160 days when treated in a greenhouse, while the oil contaminations decreased by only 15.46% in the untreated sludge. The variations of the physical and chemical properties of oil sludge, the amount and the functional diversity of microorganisms in sludge were characterized. The results indicated that the water-holding capacity of oil sludge, the amount and the metabolism functional diversity of microorganisms in sludge in the three treatments increased markedly compared with the control. [ABSTRACT FROM AUTHOR]