Abstract: Oily sludge is a typical hazardous waste generated in the processes of petroleum extraction, storage, transportation, and refining. It is characterized by high water content, strong viscosity, and complex composition, and its improper disposal may lead to serious environmental and ecological risks. With the advancement of the dual-carbon strategy, the resource recovery and low carbon treatment of oily sludge have become important research directions in the field of solid waste management. This article systematically reviews the research progress of major resource recovery technologies for oily sludge in recent years, including methods such as pyrolysis, solvent extraction, conditioning-mechanical separation, ultrasonic treatment, and thermochemical cleaning. Pyrolysis technology has the potential for resource recovery, energy conversion, and carbon emission reduction, and represents a key approach for the high-value utilization of oily sludge. Through improvements such as catalytic pyrolysis, co-pyrolysis, and microwave pyrolysis, the quality of the products and the energy conversion efficiency can be significantly enhanced. Comparative analysis further indicates that pyrolysis char has long-lasting emission reduction benefits in soil improvement and carbon sequestration, while pyrolysis oil and pyrolysis gas show promising potential for replacing fossil fuels in clean energy applications. Research on carbon emission reduction through pyrolysis of oily sludge is still in its initial stage, with deficiencies remaining in carbon footprint quantification, environmental risk assessment, and industrial-scale application. Future efforts should focus on strengthening the life cycle assessment of the pyrolysis process and research on multi-technology coupling, and establishing a systematic evaluation framework for the resource recovery of oily sludge and carbon emission reduction, thereby providing scientific support for achieving a green and low-carbon transformation of the petroleum industry.