Toluene is a priority pollutant that can be introduced to soils in a variety of wastes, including some municipal sludges. Laboratory experiments were conducted to study the behavior of toluene in two soils in the presence and absence of municipal sludge. Sludge additions increased toluene adsorption in two soils because of increased organic C content. The source of organic C (soil or sludge) and soil clay content also influenced toluene adsorption. Toluene adsorption-desorption was reversible in one soil, but slightly hysteretic in the other soil. An air-flow incubation system was used to evaluate toluene volatilization and degradation. The primary fate of surface-applied toluene in both soils was volatilization. Toluene volatilization rates were independent of sludge treatments. Toluene degradation was negligible in all treatments because of rapid volatilization losses. Despite increased toluene adsorption in the presence of sludge and reduced volatilization in saturated soils, gaseous transfer dominated all soils and treatments so that no toluene remained after 10 d.