Petroleum-contaminated soil (PCS) caused by the accidental release of crude oil into the environment, which occurs frequently during oil exploitation worldwide, needs efficient and cost-effective remediation. In this study, a fast pyrolysis technology was implemented to remediate the PCS and concurrently recover the oil. The remediation effect related to pyrolytic parameters, the recovery rate of oil and its possible formation pathway, and the physicochemical properties of the remediated PCS and its suitability for planting were systematically investigated. The results show that 50.9% carbon was recovered in oil, whose quality even exceeds that of crude oil. Both extractable total petroleum hydrocarbon (TPH) and water-soluble organic matter (SOM) in PCS were completely removed at 500 °C within 30 min. The remaining carbon in remediated PCS was determined to be in a stable and innocuous state, which has no adverse effect on wheat growth. On the basis of the systematically characterizations of initial PCS and pyrolytic products, a possible thermochemical mechanism was proposed which involves evaporation, cracking and polymerization. In addition, the energy consumption analysis and remediation effect of various PCSs indicate that fast pyrolysis is a viable and cost-effective method for PCS remediation.