Technology of pyrolysis rotary furnace for oil sludge was conducted in this paper, which feature with natural gas as fuel, multi-combuster for heating controlling and novel dynamic-static sealing structure at both ends of the rotary furnace. A complete set of technical process was designed and operated with processing scale of 10 tons/day of oil sludge (The sludge moisture content is 80%). The result indicates that the system meets the standard of safe running. Recovery rate of the oil in sludge is more than 80%, while the oil content of pyrolytic residues is less than 0.3%. The main components of non-condensable gas include methane and hydrogen, occupying 35% and 40% respectively. There are high content of lightweight fractions in pyrolysis oil, such as gasoline, kerosene and diesel oil, in which the C10-C15 is near to 50%-60% and aromatics can be up to 60％. Finally, due to the high contents of carbon and aluminum salt in residue, it is much worth for the carbon and aluminum salt recovery.