The purpose of the present study was to adapt the activated sludge model No. 3 (ASM3) to the characteristics of oily industrial wastewater, determining the utmost significant and appropriate kinetic as well as stoichiometric parameters. An oily industrial wastewater treatment system was simulated to assess ASM3 validation and perform sensitivity analysis using the STOAT program. The obtained results revealed that the ASM3 model, which was calibrated after adding the Arrhenius equation into consideration, provided strong correlations with the analytical results of chemical oxygen demand (COD), total suspended solids (TSS), mixed liquor volatile suspended solids (MLVSS) and total suspended solids in the return activated sludge flow (TSS in RAS) concentrations. The values of modelled effluent COD and TSS are very close to those corresponding real values of the treated wastewater by a difference of between 0.5% and 1.5%. Thus, this model becomes successful in representing oily industrial wastewater treatment as a new trend added to the traditional modelling of sewage treatment.