Abstract A pilot-scale anaerobic co-digestion research study is presented to elucidate the feasibility of developing anaerobic digestion (AD) as an effective disposal method for municipal biomass waste (MBW) in China, focusing on biogas production and greenhouse gas (GHG) reduction. Food waste, fruit–vegetable waste, and dewatered sewage sludge were co-digested in a continuous stirred-tank reactor for biogas production. Stable operation was achieved with a high biogas production rate of 4.25 m3 (m3 d)−1 at organic loading rate of 6.0 kgVS (m3 d)−1 and hydraulic retention time of 20 d. A total of 16.5% of lipids content was beneficial to the biogas production of the feedstock without inhibition to anaerobic digestion. Compared with the landfill baseline, GHG reduction is an important environmental benefit from MBW digestion. Therefore, anaerobic co-digestion is a promising alternative solution for MBW because it contributes significantly to the sound management of municipal solid waste in China.