After mechanical dewatering, sewage sludge has a moisture content of around 80 wt% and further disposal is required. A new sewage sludge semi-drying (dewatering) process is proposed and verified. It combines thermal hydrolysis and subsequent mechanical dewatering, with less energy consumption than traditional thermal drying. Sludge treated using this new process satisfies further disposal requirements (e.g., landfill or autothermal incineration). In the present study, a high-pressure test reactor was used to study the thermal hydrolysis of dewatered sludge. Thermally hydrolyzed sludge was subsequently dewatered by centrifugal sedimentation or by pressure filtration. The amount of organic compounds returning to the water phase was also measured. According to the results from centrifugal settling tests, the optimal thermal hydrolysis treatment temperature was 180°C. The moisture content then dropped to 1.44 kg/kg dry solids (DS; 59 wt%) after dewatering under relative centrifugal force of 9,000 × g from 5.67 kg/kg DS (85 wt%). Pressure filtration further reduced the moisture content of filter cakes to only 0.5 kg/kg DS (33 wt%, hydrolysis temperature 180°C). After thermal hydrolysis, the heating value of sludge (moisture-free basis) was about 80% that of the untreated sludge.