This study provides a result of thermal mercury reduction for inventing a mercury recovery technology from the sludgewhich contains high concentration of mercury. Physical, chemical and thermal properties of the sludge were analyzed andmercury degradation at elevated temperatures was investigated to find out the optimum temperature range for thermalrecovery of mercury from the sludge generated from an industrial facility, which contained high concentration of mercury.The study was carried out in the temperature range of up to 650oC from 200oC, and 500~710µm particle size of wastesludge samples were selected from such industries. As primary thermal tests the sludge was heated up to observe weightdegradation at a continuous weight measurable thermogravimetric analyzer and a muffle furnace and the degradationcurves from both devices were found to be well matched. Mercury conversion to gaseous form was investigated fromthe analyzed data of mercury concentrations sampled every 25oC from a muffle furnace. Cold vapor atomic absorptionspectroscopy (CVAAS) Hg analyzer was used for the analysis of mercury content in solid and liquid samples. Most ofmercury was degraded and released as gas phase at the temperature range from 300oC to 550oC, which could be theoptimum temperature of mercury recovery by thermal method for the sludge containing high concentration of mercury.Based on these thermal mercury reduction studies, degradation kinetics study of mercury was conducted to provide thereaction kinetics data for further reactor design to recover mercury using a thermal method.