Abstract: Disclosed is a method of making capsules of dehydrated sludge which can omit conventionally required unit operations, reduce or eliminate the cost of the equipment and power, heat energy and consumables required for operation, and assures simple operation. The method includes the steps of shaping a steel strip into the form of a channel, supplying sludge into the channel formed in the previous step, shaping the channel formed steel strip with the sludge charged therein such that it has practically a circular cross-section to enclose the sludge, pressing and crushing an outer periphery of a steel tube shaped in the previous step to form a constriction, pressing and cutting the constriction and repeating series of the above-described steps.