Chemical characteristics of paper sludge, degradation of the sludge in soil and $CO_2$ generation, and changes of nitrogen and heavy metals in soil treated with the sludge were investigated. The results obtained was summarized as follows: 1. Degradation rate of paper sludge in soil was 19% at room temperature, and 28% at $incubation(30^{\circ}C)$ temperature after 12-weeks treatment. 2. T-C, T-N and the C/N ratio of the sludge in soil at room temperature were 15.5%, 0.22% and 71 respectively, and 14.5%, 0.24% and 60, respectively, at $incubation(30^{\circ}C)$ temperature after 12-week treatment. 3. $CO_2$ genaration in soil treated with 1%, 3% and 5% of the sludge was 247mg/100g, 334mg/100g and 458mg/100g, respectively, at room temperature, and 385mg/100g, 550mg/100g and 618mg/100g, respectively, at incubation temperature after 12 weeks treatment. 4. Mineralization ratio of organic nitrogen in soil treated with 1%, 3% and 5% of the sludge was 8.7%, 13.4% and 16.2%, respectively, at $incubation(30^{\circ}C)$ temperature after 12-weeks treatment. 5. The amounts of DTPA-extractable Cu, Cd, Zn, Pb, and Cr in Soil treated with paper sludge were $0.7{\sim}2.2$, $0.1{\sim}0.17$, $1.4{\sim}2.8$, $1.4{\sim}2.8$, and $0{\sim}0.7mg/kg$, respectively. Mean while, those of $HNO_3$ extractable Cu, Cd, Zn, Pb, and Cr were $7.9{\sim}10.0$, $0.6{\sim}0.9$, $17.6{\sim}34.4$, $14.7{\sim}18.5$, and $5.8{\sim}9.0mg/kg$, respectively.