Abstract: A process for producing substantially dry slag granules comprises adding a controlled amount of water to a molten stream of slag, and granulating the slag to produce solidified slag comprising substantially dry slag granules and slag wool. An apparatus for producing substantially dry slag granules comprises: (a) an inclined surface having an upper and lower ends for receiving and discharging the stream of slag; (b) a dispersion device at the lower end of the inclined surface for dispersion of the molten slag; (c) one or more water addition devices for adding a controlled amount of water to the molten slag; and (d) a collection area adjacent to the dispersion device for deposition of solidified slag produced by the dispersion. The quantity of slag wool produced by the process and apparatus is less than that which would be produced without the addition of water.