Alum shale formations in Scandinavia are generally enriched in uranium (U) and, when exposed to air and water, may produce acidic rock drainage (ARD), releasing potentially harmful elements into the environment. Taraldrud is a legacy site in southeast Norway where approx. 51 000 m³ of alum shale was deposited in the 1980s–1990s. In 2006, ARD formation became obvious after high concentrations of leachable elements and low environmental pH were measured in a nearby stream. A manmade precipitation pond and liming treatments attempt to address the environmental pollution, but the site remains non-remediated. This study aimed to evaluate the extent of contamination caused by ARD and examine environmental and human health risks caused by mobilized trace elements and radionuclides. Surface water, sediment, soil, and biota samples were collected in the area and chemically and/or radiochemically analyzed to assess the prevailing concentrations within different environmental compartments. The elemental distribution and variation patterns were studied using principal component analysis. Most of the leachable elements were present in highly mobile and bioavailable forms in the pond water, out of which Cd, Mn, Ni, and U exceeded drinking water regulations. The highest enrichment in soil and sediment was for U, which was associated with the sulfide-bearing soil fraction, Fe, Cu, Mo, and As. No changes in water quality were observed between up- and downstream from the site, indicating that the Fe and S rich phases in the pond retain the leachable elements effectively under prevailing environmental conditions. This study provides valuable insights into the risks and challenges associated with ARD and where U is the main pollutant of concern.