A bio-enzyme consists of pectinase, protease, lipase, cellulose, catalase and amylase; the application of bio-enzyme catalysis in residual sludge treatment is that: the residual sludge is treated by utilizing the high-efficiency biocatalysis of the bio-enzyme, odor molecules in the sludge are decomposed and deodorized through enzyme technology, pathogenic bacteria, ova and larvae are killed by utilizing an acid environment formed by inorganic acid generated by the sludge and a high temperature environment in the fermentation process, heavy metal ions in the sludge are stabilized by utilizing the chelation of the bio-enzyme, and the sludge is catalyzed by the enzyme, so that the sludge and water are quickly separated, a large amount of supernate is discharged, the sludge volume is reduced, and the sludge in inland river is reduced and is subjected to innocent treatment; meanwhile, through the bio-enzyme catalysis, long-chain molecules in the sludge are converted into short-chain molecules, polysaccharide and cellulose are converted into protein and amino acid, nutritional components of organic fertilizers are remained, the fertilizer efficiency is improved and the fermentation period can be shortened.