The relative contribution that solid waste or ‘sludge’, which accumulates at the bottom of abalone (Haliotis midae L.) tanks, makes to dissolved ammonia has not been established. Sludge was allowed to accumulate in 10 fully stocked abalone tanks, fed a formulated feed (Abfeed®; Marifeed, South Africa), for 24 days. Sludge was subsequently siphoned from five of these tanks. Total ammonia nitrogen (TAN) production and toxic, free ammonia nitrogen (FAN) were recorded in the tanks from which sludge was removed and compared with those from which sludge was not removed over the subsequent 50 h. Tanks with neither abalone nor sludge present were used as a control. The mean production of TAN (±standard deviation) was an average of 44% higher in tanks from which sludge was not removed compared with those from which it was, indicating that the sludge was a significant contributor to dissolved ammonia in the tanks. The toxic FAN concentrations were correspondingly higher in tanks with sludge present (2.3±0.3 μL−1) compared with cleaned tanks (1.9±0.1 μL−1). Our results indicate that regular removal of sludge from abalone tanks should significantly reduce the dissolved ammonia levels, thereby improving water quality in the culture environment.