With the development of urbanization in china, municipal wastewater treatment develops rapidly. Consequently, lots of sewage sludge are produced and sludge treatment and disposal are required in China. However, the sludge treatment and disposal developed slowly because of the lack of policy and technology, leading to hidden trouble of pollution. Based on the summary of the domestic status and analysis of sludge treatment and disposal, this paper draws a conclusion that, the sludge treatment and disposal develops slowly not only in terms of policy guidance, technical breakthrough, but also to change the thinking of sludge treatment and disposal. The economic and effective way about sludge treatment and disposal is to reduce source production, control sludge production in process and change the disposal way. In the end of this paper, two new ways named situ-control and process-control are put forward for sludge treatment and disposal.