The invention discloses a sludge recycling treatment method. The method comprises the following steps that 1, concentrated sludge of a sewage treatment plant is collected and then enters a sludge dewatering system to be dewatered; 2, sludge obtained after dewatering is continuously sent to a sludge drying system for sludge drying, and gas generated by the sludge drying system in the drying processenters a condensing unit through a first discharge pipeline, then enters a tail gas purification system through a second discharge pipeline, and is discharged after purification of the tail gas purification system reaches the standard, wherein the condensing unit is provided with a sewage pipeline discharging condensate water; 3, dried sludge is continuously sent into a sludge dry distillation system to be subjected to pyrolysis under the condition of isolating air; 4, a solid product obtained through pyrolysis is continuously sent into a sludge gasification system, and finally slag is produced. According to the scheme, reduction, stabilization, detoxification and recycling of the sludge can be achieved.