The invention provides a method for treating sludge by utilizing a microbial flocculant and microbial wall breaking. According to the method, residual sludge is subjected to biological modification with a microbial flocculant, the modified sludge is subjected to biological wall breaking with a microbial wall breaking flora and a heavy metal chelating flora, the content of heavy metals is reduced,and sludge is subjected to aerobic fermentation with a sludge fermentation flora and a biomass fermentation flora, such that the sludge is converted into organic humus. No chemical agent is added in the whole process, no energy is input into the sludge in the dehydration process, only a small amount of mechanical power is used during stacking and turning, the sludge is modified, heated and dried by purely utilizing the activity advantage of microorganisms, and finally reduction, harmlessness, stabilization and recycling of the sludge are achieved. According to the invention, a new method for treating and disposing residual sludge and industrial sludge with high organic matter content in municipal sewage plants is opened up, and the method provided by the invention has the advantages of lowequipment investment, simple operation, safety, no pollution, low energy consumption, and good economic and environmental benefits.