The invention discloses a resource utilization method of municipal sludge in minipellet sintering. The resource utilization method is characterized by comprising the following raw materials in parts by weight: 1 to 18 parts of municipal sludge, 12 to 20 parts of iron concentrate powder, 12 to 24 parts of quicklime and 132 to 150 parts of metallurgical waste. The resource utilization method comprises the following steps of (1) uniformly mixing the weighed raw materials; (2) pelletizing the raw materials which are uniformly mixed in the step (1) by a pelletizer; and (3) screening minipellets prepared in the step (2), wherein the minipellets of which the granularity is less than 3 mm are used as the raw materials in the step (2) so as to perform the step (2) and the step (3), the minipellets of which the granularity is not less than 3 mm are used as sintering mixing raw materials so as to be conveyed to a sintering machine for downdraft sintering, and the weight proportion of the minipellets of which the granularity is not less than 3 mm in the sintering mixing raw materials is 6% to 8%.