Abstract: A continuous process for the reclamation of a slurry of waste drilling mud fluids and water normally resulting from drilling operations. The process comprises the steps of conducting the drilling mud slurry to a slurry surge tank for liquid solid separation by chemical and physical methods.The mud slurry is subjected to a primary solids separation unit after pH adjustment is used to initiate coagulation and an organic flocculant is added to aid flocculation of the solids.The water is then subjected to a secondary solids removal, and the solids recovered are reintroduced in the primary solids separation unit. Thereafter the water obtained from the secondary solids removal is then subjected to a chemical oxygen demand reduction unit having a carbon adsorption unit or reverse osmosis membrane units therein to remove organic matter or dissolved solids to produce water meeting environmental discharge requirements.