Bentonite slurries in a slurry wall construction must fulfill a stabilizing function by forming impermeable membrane (surface cake and penetrated cake) on the excavated soil faces. Thus problems are occurring in practice for the construction of diaphram walls and cut-off walls with a low permeability for wastes disposal areas in some deep excavations or different grounds. In this paper, the fundamental mechanics of fluid loss and filter cake formation in various soil beds are investigated using large scale laboratory apparatus. The sealing efficiency of filter cake from the large scale tests and the significance of fluid loss in a slurry trench are utilized for practical situation as a recommended design procedure.