Ore-based steelmaking generates a variety of residues including dusts, sludges and slags. Recycling of these residues within the process or via other applications is essential for sustainable production from both environmental and economic aspects. In blast furnace (BF) ironmaking, there are generally two residues leaving the gas cleaning equipment; namely, BF dust and BF sludge. Traditionally, the dust is recycled via the sinter or, in the case of pellet based BF, via cold bonded agglomerates and injection. As the main output of zinc from the BF is the top gas, the sludge has to be dezinced prior to recycling to prevent accumulation of zinc in the furnace. Although dezincing of BF sludge has been successfully accomplished using e.g., hydrocycloning, the studied sludges are generally coarse sized and high in zinc. Furthermore, information is lacking regarding the efficiency of separation of different hydrocyclone setups. In the present work, hydrocycloning of a fine sludge, with low zinc content, generated by a pellet based BF has been studied. The gas cleaning equipment used to produce the sludge was running a primary aerocyclone and a scrubber. A characterization of the sludge has been conducted together with an evaluation of the separation efficiency of the hydrocyclone in order to assess the hydrocyclone performance and limitations. Furthermore, the dezincing using the hydrocyclone has been compared to that of sulfuric acid leaching. The results suggest that 51 to 93% of the sludge can be recycled depending on the demand on zinc removal and the chosen dezincing route.