Petroleum pollution is an important environmental issue in most of the countries especially those have an oil industry. This study was conducted to investigate the effect of petroleum pollution on soil water repellency and its relation to soil structural stability in Bakhtiardasht area, Isfahan. Polluted and adjacent non-polluted locations were selected to be representative in the green space around the Isfahan Oil Refinery. Soil water repellency was assessed using water drop penetration time (WDPT) in the polluted locations. Soil sample with least aggregates disturbance were collected and selected soil physical and chemical properties were measured. Soil structural stability was evaluated using the wet-sieving method and mechanically dispersible clay (MDC) structural stability indices of mean weight diameter (MWD) and geometric weight diameter (GMD) of aggregates and MDC were then calculated. Results showed that the positive effect of petroleum pollution on the MWD and GMD become significant. Negative impact of petroleum pollution on MDC was also significant. Increment of total petroleum hydrocarbons (TPHs) increased the soil water repellency. A positive correlation was observed between soil water repellency and GMD. However, TPHs concentrations greater than 6.4% decreased the MWD and GMD presumably due to anionic repulsion between clay particles and hydrocarbon functional groups. Although greater water repellency increased soil structural stability in the polluted locations when compared to control locations, however, diminished water retention of polluted soil has created an unfavorable condition for the green space in the area.