Until recent years, waste oil and oil-contaminated waters commonly ended up in landfills. At some dump sites, ponds of oily liquids and leachate were formed. To remediate such ponds, an interdisciplinary approach is now required, keeping costs at an affordable level, particularly in countries with changing economies. From 1974 to 1993, liquid oily wastes taken to the Laguja landfill, in Estonia, were disposed of in a pond with a surface area of 9800 m2. It was estimated that the pond contained 4500-6000 m3 of oily water and 3500 m3 of oil-containing bottom sediments. This study aimed at developing an environmentally sound and cost-effective method for remediation of the oily liquids, leachate and contaminated underlying sediment material, to meet the existing legal demands. It was concluded that treatment of contaminated water is well established and the procedures carried out to meet the regulatory demands achieved satisfactory results. However, regarding treatment of sediments it was concluded that legal and technological aspects, as well as monitoring procedures are not fully established and are usually underestimated. Laboratory investigations can provide valuable information in decision-making, and contribute to effective full-scale remediation planning.