An investigation on the polluted sediments in the Lake Sihwa and the benthos that inhabited on the sediments was conducted. Cost effective remediation alternatives were derived form the results of the investigation. The sediment samples taken from four sampling points out of thirteen showed relatively high heavy metal (particularly copper) concentrations which exceeded the Effects Range Low (ERL) of the National Oceanic and Atmospheric Administration, USA. The four sampling points were located in front of industrial complexes. Although the heavy metals appeared to have affected the growth of the benthos, the concentration of it did not exceed the criteria of dredging that were developed by Netherlands or the State of Washington, USA. However, contamination by organic matters and sulfur compounds was severe, which exceeded the criteria of dredging that were established in Japan. The sediments taken from the four sampling points which were contaminated with heavy metals showed higher organic matter content in general. The organic matters in the sediments depleted oxygen in summer, which appeared to be fatal to the benthos. A comprehensive analysis on the sediments, benthos, and other environmental impact from the contaminated sediments drew a conclusion that the benthonic environment of the Lake Sihwa needed a stepwise remediation, giving a particular emphasis on the clean up of the sediments upstram of the Lake which could cause odor problems to the nearby residential area.