This study provides an experimental result of thermal mercury reduction and condensation characteristics for inventing a mercury recovery technology from the waste sludge which contains high concentration of mercury. Thermal treatment was conducted in the temperature range of up to 900oC from 600oC with different residence time using a waste sludge from domestic industrial facility. Properties of powder material condensed after thermal treatment were analyzed to assess the effectiveness of thermal processing. Leaching characteristics of bottom ash and condensed powder material were analyzed by Korean Standard Leaching Test method (KSLT). Cold vapor atomic absorption spectroscopy (CVAAS) Hg analyzer was used for the analysis of mercury content in solid and liquid samples. We found that mercury contents was concentrated compared with waste sludge. However, the mercury concentration of leached solution from the condensed powder material was very low. The chemical characteristics of condensed powder material was estimated using experimental analysis and literature survey. In order to recover purified elemental mercury, the further researches of refining experiments would be required.