The invention discloses a municipal sludge non-sintered ceramsite and a production method thereof. The municipal sludge non-sintered ceramsite is produced from, by weight, 40-60% of municipal sludge, 20-30% of cement, 5-10% of fly ash, 3-7% of desulfurized gypsum, 3-7% of slag micro-powder and 4-6% of sodium silicate, wherein the municipal sludge is deodorized municipal sludge, and the content of the municipal sludge is controlled to be 70-80%; the content of free water in the desulfurized gypsum is 10-15%, the average granularity is 20-50 [mu]m, and the 200 mesh screen residue is 5.2%; the ignition loss of the slag micro-powder is 1.77%, and the specific surface area of the reduced slag micro-powder is 450 m<2>/kg; and the sodium silicate is powdery, the mass percentage of water-insoluble substances is not greater than 0.04%, the mass percentage of water is not greater than 25%, the modulus is 2.6-2.8, and the granularity is 20-40 meshes. The municipal sludge non-sintered ceramsite can digest a large amount of municipal sludge, and also can digest fly ash, slag micro-powder, desulfurized gypsum and other industrial wastes, so the utilization approach of above solid wastes is widened; and compared with a roasting technology, a non-sintering technology adopted by the above product has the advantages of energy saving, low carbon and environmental protection.