With the acceleration of urbanization, the production of urban sludge is increasing rapidly. To minimize resource input and waste output, it is crucial to execute analyses of environmental impact and assessments of sustainability on different technical strategies involving sludge disposal based on Life Cycle Assessment (LCA), which is a great potential mean of environmental management adopted internationally in the 21st century. This review aims to compare the environmental sustainability of existing sludge management schemes with a purpose of nutrient recovery and energy saving, respectively, and also to include the substitution benefits of alternative sludge products. Simultaneously, LCA research regarding the emerging sludge management technologies and sludge recycling (cement, adsorbent, bricks) is analyzed. Additionally, the key aspects of the LCA process are worth noting in the context of the current limitations reviewed here. It is worth emphasizing that no technical remediation method can reduce all environmental damage simultaneously, and these schemes are typically more applicable to the assumed local conditions. Future LCA research should pay more attention to the toxic effects of different sludge treatment methods, evaluate the technical ways of adding pretreatment technology to the 'front end' of the sludge treatment process, and further explore how to markedly reduce environmental damage in order to maximize energy and nutrient recovery from the LCA perspective.