Abstract This study evaluates the operational performance, environmental impact, and regulatory compliance of the WUPA Sludge Treatment Plant, with a focus on sludge and water quality management. Sludge and water samples from the WUPA River were analysed for key physicochemical parameters, including pH, turbidity, dissolved oxygen, and heavy metal concentrations. The results indicate high pollutant removal efficiency, with turbidity, suspended solids, and biochemical oxygen demand reduced by 66.27%, 91.42%, and 91.43%, respectively. While the treated sludge demonstrates suitability for agricultural application, nitrate concentrations exceed permissible limits for direct water discharge. Total dissolved solids removal and electrical conductivity reduction exhibited minor inefficiencies, resulting in an overall plant performance efficiency of 57.73%. Environmental impact assessment revealed minimal risk of leaching or odour to surrounding areas; however, turbidity and trace metal concentrations in river water exceeded WHO drinking water guidelines. The study highlights the need for enhanced nitrate reduction, heavy metal monitoring, and process optimisation to improve both operational efficiency and environmental compliance. Additionally, the findings provide insights into potential energy recovery from sludge and offer transferable strategies for UK wastewater utilities to advance low-carbon, net-zero, and sustainable sludge management practices.