The environmentally friendly magnesium oxychloride cement (denoted as MOC thereinafter) shows promising application prospects. Meanwhile, more emphasis is being paid to the environmental issues created by CO2 emissions. In this paper, carbonation-composite solidification technology is adopted to introduce MOC-lime cementitious material into sludge solidification. The effects of initial water content (H2O/MgCl2 molar ratio), lime content, MgO/MgCl2 molar ratio, and carbonation time on the mechanical properties and micro-mechanisms of sludge solidification were investigated using unconfined compressive strength (UCS), pH value, carbonation depth, mass loss rate, scanning electron microscopy (SEM), and X-ray diffraction (XRD) tests. The results show that the UCS of sludge solidification decreases with an increase in H2O/MgCl2 molar ratio, and increases first and then decreases with an increase in lime content, reaching a maximum value at H2O/MgCl2 molar ratio of 24.3 and lime content of 4 %. Notably, carbonation significantly improves the UCS of the samples, and with an increase in carbonation time, the mass loss rate and carbonation depth increase, while the pH value decreases. Additionally, uncarbonated samples show an increase in compressive strength with an increase in MgO/MgCl2 molar ratio, as the hydration products gradually transform from amorphous gel to crystalline phases 3, phases 5, and brucite (Mg(OH)2). Finally, XRD and SEM results indicate that the underlying mechanism for the significant improvement in strength and microstructure of the samples after carbonation is the formation of a block-like crystalline network with good binding ability, consisting of chlorartinite, nesquehonite, calcium carbonate, and C-S-H gel. This study promotes the use of MOC-based gel materials as a green stabilizer for sludge solidification, and the carbonation technique employed can improve the mechanical properties of solidified soil and significantly reduce the curing time.