Studying the long-term effect of composted sewage sludge application on chemical, physical and biological properties of soil, an experiment was established in 2003 at the Research Institute of Nyíregyháza in Hungary. The applied compost was prepared from sewage sludge (40%), straw (25%), bentonite (5%) and rhyolite (30%). The compost was ploughed into the 0-25 cm soil layer every 3rd year in the following amounts: 0, 9, 18 and 27 Mg ha^-1 of dry matter. As expected, the compost application improved the structure of sandy soil, which is related with an increase in the organic matter content of soil. The infiltration into soil was improved significantly, reducing the water erosion under simulated high intensity rainfall. The soil compaction level was reduced in the first year after compost re-treatment. In accordance with the decrease in bulk density, the air permeability of soil increased tendentially. However, in the second year the positive effects of compost application were observed only in the plots treated with the highest compost dose because of quick degradation of the organic matter. According to the results, the sewage sludge compost seems to be an effective soil improving material for acidic sandy soils, but the beneficial effect of application lasts only for two years.