The main objective of this study is to investigate the efficiency of the physicochemical treatment process for removal of hazardous refractory wastewater from carpet industry. Characteristics of carpet industry wastewater in terms of COD, BOD, TSS were 60000, 110, 9800 mg/L. Their complete biodegradation is usually very slow as indicated from the immensely low value of BOD/COD, 0.002.High TSS promote the coagulation/flocculation in which coagulants such as ferric chloride, ferrous sulfate and flocculent are added to wastewater in order to destabilize the colloidal materials, eliminate as much as possible of suspended solids and organic materials. The results showed that ferric chloride (1.2g/l), flocculent (2mg/L) at pH 8 achieved COD removal efficiencies of 97% whereas using ferrous sulfate (1.8 g/l), flocculent (2 mg/L) at pH 7 achieved 98% COD removal. Corresponding TSS removal values were 96 and 97%, respectively. Furthermore, lamellar sedimentation of the treated effluent followed by sand filtration upgrades the finally treated effluent for recycling inside the factory, the residual COD and TSS were70 and5mg/L respectively.The construction cost of the treatment unit (100 m3/d) is about US$ 26000 and the running cost is about US$ 3300/year, providing a saving of about US$ 8064/year.