Sludge-based biochar was first modified for the adsorption of phosphorus from aqueous solution. This study is to modify sludge-based biochar (SBC) via peroxidation with nitric acid and impregnation with ferrous ions to obtain a high adsorption capacity for phosphorus (P). The P adsorption capacity of the modified sludge biochar (M-SBC) was increased to 9.79 mg/g, a value almost 40 times higher than that of the original biochar. Among the adsorption parameters studied, pH was found to be particularly important to P adsorption. After modification, the point of zero charge of the M-SBC occurred at pH 6. The isotherms of P adsorption on M-SBC obeyed the Freundlich equation. An analysis of the adsorption thermodynamics indicated that the process of P adsorption on M-SBC was spontaneous and endothermic, increased the degree of disorder, and involved chemisorption. The main mechanisms of P adsorption were surface precipitation and electrostatic attraction.