A 3-D axisymmetric model is developed to predict pressure wave propagation processes during gelled waxy oil pipeline restart operations. A finite volume method is implemented on a staggered grid. An iterative predictor-corrector algorithm provides solutions to the combined parabolic-hyperbolic set of governing equations. A new shear-history-dependent thixotropic rheology model is proposed for pressure wave propagation computations. Moderate Reynolds number flows within the laminar regime are computed, demonstrating the impact of inertial effects. The results clearly illustrate the important mechanisms of pipeline restart. The nature of pressure wave propagation is governed by gel strength as well as overall fluid compressibility. Three sequential pressure wave propagation regimes are dominated by inertial, viscous, and gel degradation phenomena, respectively. The viscous and gel degradation regimes are effectively coupled by imposed deformation conditions. For initially homogenous thixotropic gels, strain tends to localize near the pipeline wall, playing a central role in assuring the pipeline restart. (c) 2015 American Institute of Chemical Engineers AIChE J, 61: 2657-2671, 2015