This paper presents and describes a comprehensive and costeffective approach to diagnose and treat the formation damage problems. The proposed approach consists of systematic steps: recognition of the immediate problem; data collection, analysis and integration; identification of the source of the formation damage problem; assessment of the formation damage; identification of the proposed treatment techniques; evaluation of all options; selection of the best stimulation technique; stimulation process design, implementation of the plan; and evaluation and analysis of the results. Application of such approach in an oil producing well (case study from the Gulf of Suez area) of an international joint venture company in Egypt achieved oil production rate of 560 bbl/day after complete mud loses during the drilling operations. Such study is an original contribution to the knowledge of diagnosing and solving formation damage problems.