With　the　booming　construction　of　sewage　treatment　plants　aiming　at　environmental　protection,　China　has　to　face　an　emerging　urgent　task　to　address　the　sludge　treatment　and　disposal　problem.　However　there　is　a　big　controversy　in　China　about　the　sludge　treatment　and　disposal　strategies.　Some　scientists　suggest　incinerating,　while　others　insist　on　landfilling.　In　this　paper,　from　the　perspective　of　sustainable　development　and　cyclic　economy,　a　detailed　analysis　of　nutrients　cycle　mainly　related　to　nitrogen　and　phosphate　before　and　after　industrialization　was　made　and　a　view　that　sludge　should　go　back　to　soils　to　re-establish　a　sound　nutrients　cycle　was　put　forward.　Then　the　feasibility　for　sludge　recycle　to　soils　was　discussed　and　some　land　application　methods　for　sludge　were　introduced.　At　last,　a　successful　case　of　producing　compounded　fertilizer　from　dewatered　sludge　in　Northeast　China　was　described　in　detail.