Biodegradation is a process in which microorganisms are committed to transform toxic chemicals into less toxic or harmless. Three bacterial strains, Escherichia coli (E. coli), Micrococcus sp., and Clostridium sp. were isolated from contaminated soil found near the automobile service station and tested for their ability to degrade the waste oil sludge found near automobile service station. The results collectively indicating that these bacterial strains have considerable potential for bioremediation of waste oil sludge. The present study also demonstrates that, among the three organisms, E. coli showed the best oil degrader, when compared to other two bacterial species.