Abstract: A method and apparatus are disclosed for the treatment of paint sludge and for reducing volatile organic compound emissions from a paint spraybooth operation, thereby obtaining a recyclable material for use in new coating products. In such an operation, uncured paint resins mixed with volatile organic compounds are sprayed onto an article to be painted and at least a portion of the overspray is mixed with water to form a waste stream containing water, uncured paint resin, volatile organic compounds and inorganic substances. The method includes the steps of: removing a portion of the water and liquid volatile organic compounds from the waste stream; heating the resultant sludge to volatilize the residual water and liquid volatile organic compounds and to cure the uncured paint resin; collecting the residual solids stream, and removing all of the volatilized organic compounds from the resultant stream, thereby generating a volatile organic compound-free gas effluent.