As　a　new　technology　for　accurate　utilization　of　sludge　resources,　sludge　inorganic　-organic　matter　separation　(IOMS)　has　attracted　wide　attention.　This　study　examined　the　impact　of　this　pretreatment　on　environmental　and　economic　performance　of　sludge　composting　and　incineration　using　life　cycle　assessment　(LCA)　and　whole　life　costing　(WLC).　LCA　results　indicated　that　IOMS　pretreatment　reduced　the　energy　conservation　and　emission　reduction　(ECER)　values　of　composting　and　incineration　by　56　%　and　76　%,　respectively.　Meanwhile,　WLC　exhibited　that　IOMS　pretreatment　could　cut　the　break-even　year　of　incineration　from　11　years　to　4　years.　The　combination　of　organic　sludge　incineration/composting　with　inorganic　sludge　sintering　ceramsite　reveals　excellent　environmental　and　economic　performance.　The　application　optimization　hypothesis　analysis　of　these　two　routes　in　various　provinces　of　China　indicates　that　Jiangsu　has　the　greatest　development　potential　and　should　become　a　major　promotion　region.