A cascade refrigeration system includes an upper portion having at least one modular chiller unit that provides cooling to at least one of a low temperature subsystem having a plurality of low temperature loads, and a medium temperature subsystem having a plurality of medium temperature loads. The modular chiller unit includes a refrigerant circuit having at least a compressor, a condenser, an expansion device, and an evaporator. An ammonia refrigerant mixed with a soluble oil circulates within the refrigerant circuit. A control device may be programmed to modulate the position of the expansion device so that a superheat temperature of the ammonia refrigerant near an outlet of the evaporator fluctuates within a substantially predetermined superheat temperature range to positively return soluble oil from the evaporator to the compressor.