I'd discharge and dispose. Last battery I had with a significant dent I figured "what the heck - let's charge it up". It seemed to be taking a charge just fine for about a half hour, and I didn't think anything weird was going on so I stepped out of my shop for a minute. Came back and it had blown up like a balloon and was super hot to the touch and making a "squeeeeeee" noise!
Scared the crap out of me - it was a 4s4000mah so plenty of stored energy for a fire. I hauled it outside and threw it in a clay pot and covered it with wet sand quickly. About 30 minutes later it shrunk back down to normal size again. So it got the discharge and dispose treatment - but never came back in the workshop.