Waste activated sludge (WAS), a byproduct of wastewater treatment (WWTPs) facilities is challenging to manage because of its high organic content. Most of WAS is managed via anaerobic digestion (AD) to produce biogas, which is not deemed economically viable. The AD of WAS into volatile fatty acids (VFA) and their subsequent upcycling into polyhydroxyalkanoates (PHA) is gaining popularity due to their high value and uses. However, the fundamental issue with WAS is its low solubility, and pretreatment is required to increase it. Pretreatment disintegrates sludge floc and enhances its solubility, supports acetogens, and inhibits methanogens, leading to increased VFA synthesis in the AD process. The key factors influencing VFA yield include the size of the sludge granules, the mixing rate, and the presence of resistant organic components. Fermented broth containing VFA from AD can be utilized directly as a feedstock for microbial fermentation to produce PHA using both pure as well as mixed cultures. Utilisation of mixed cultures is useful since they are robust, able to consume a wide range of substrates, and do not require sterility. In addition, the VFA, which is made up of various organic acids, impacts the structure, productivity, characteristics, and type of PHA produced by microbial communities. Considering the importance of WAS management through VFA production and its integration with PHA production process this review article discusses the WAS pretreatment strategies, various factors that influence the AD process, trends in VFA to PHA production technologies with challenges, and possible solutions for integrated process development.