In this paper, COMSOL Multiphysics software was used to simulate and analyze the process of cleaning oily sludge by high-speed stirring rotor. The physical phenomena such as velocity field, pressure field, heat dissipation and cavitation generated by the rotor during the process of the oily sludge cleaning were analyzed. The results showed that in the process of cleaning the oily sludge by high-speed stirring rotor, the shear force, heat dissipation and pressure increased with the enhance in the rotor speed. Cavitation occurs in the impeller area of the rotor because of the change of pressure, so the cavitation bubbles were formed. Shear force, heat dissipation and cavitation contributed to the separation of oil phase in oily sludge. Meanwhile, the simulation results were verified by experiments.