This research focused on the recovery of valuable materials from ferrous grinding swarf. We received the sample from the automobile industry. The sample has consisted of approximately 20 wt% moisture and 80 wt% residue (oil and soild). The chemical composition of the oven-dried sample was approximately 87 wt% iron. In this study, aqueous washing process for oil removal from ferrous grinding swarf was investigated with two different commercial reagents, Micro-90 and Detergent 8. Three different amounts of solids (2, 3, and 4 g) were mixed with 20 mL of diluted reagents for the aqueous washing. In the Micro-90 solution, about 80% of the oil was removed after three washing cycles at a solids content less than 3 g/20 mL. On the other hand, when using Detergent 8, 100% oil was removed after three washing cycles at a solids content of less than 3 g/20 mL. Pulp density was an important factor in determining oil removal efficiency. For the scale-up experiment, different washing methods such as ultrasonication and overhead stirrer were examined. The preliminary reuse test of the Detergent 8 solution was also conducted for the feasibility of the aqueous washing process.