The present research takes pyrite smelter slag as the research object. Through sampling collection and experimental analysis on the waste residue and the surrounding soil, the environmental hazards of the waste residue has been investigated so as to identify the property of the waste residue. Firstly, the research identified the complex composition of the waste residue and ultimately determined the pollution factor of heavy metals through XRF scanning. By using the total amount analysis of soil sample, the content of Zinc, Copper, and Lead metal was high with strong toxicity. On the other hand, it revealed that the waste residue still has certain values of re-use. By comparing heavy metal amount in soil with soil quality standard, the arsenic content in each site has exceeded the standard. The Copper, Zinc and Nickel also were over the standard limit, and the waste residue has certain influence on the surrounding environment. In the experiment of leaching toxicity analysis, it is indicated that the heavy metal value of the waste residue was very low, thiobacillus ferrooxidans were sort out from the water sample in the experiment. The pyrite smelter slag does not belong to hazardous wastes, further determined that the waste residue belongs to Class II General Industrial Solid Waste. However, the waste residue brings about pollution to local environment, and poses much potential safely hazards to downstream residents, farmlands and livestock, food security and drinking water. Therefore, effective protection measures should be taken to these potential risks.