The safe management of toxic metal-polluted dredging sediment (DS) is imperative owing to its potential secondary hazards. Herein, the co-pyrolysis product (DS@BC) of polluted DS was creatively applied to immobilize soil Cd and As to achieve DS resource utilization, and the efficiency, safety, and mechanism were investigated. The results revealed that the DS@BC was more effective at reducing soil Cd bioavailability than the DS was (58.9–73.2% vs. 21.8–27.4%), except for the dilution effect, whereas the opposite phenomenon occurred for soil As (25.5–35.7% vs. 35.7–42.8%). The DS@BC immobilization efficiency was dose-dependent for both Cd and As. Soil labile Cd and As were transformed to more stable fractions after DS@BC immobilization. DS@BC immobilization inhibited the transfer of soil Cd and As to Brassica chinensis L. and did not cause excessive accumulation of other toxic metals in the plants. The appropriate addition of the DS@BC (8%) sufficiently alleviated the oxidative stress response of the plants and enhanced their growth. These findings indicate that the DS@BC was safe and effective for soil Cd and As immobilization. DS@BC immobilization decreased the diversity and richness of the rhizosphere soil bacterial community because of the dilution effect. The DS@BC immobilized soil Cd and As via direct adsorption, and indirect increasing soil pH, and regulating the abundance of specific beneficial bacteria (e.g., Bacillus). Therefore, the use of co-pyrolyzed DS as a soil Cd and As immobilization material is a promising resource utilization method for DS. Notably, to verify the long-term effects and safety of DS@BC immobilization, field trials should be conducted to explore the effectiveness and risk of harmful metal release from DS@BC immobilization under real-world conditions.