The environmental performance of tissue paper varies greatly based on factors such as the type of fibre used as the raw material, the production process and the fuels used to meet the energy requirements. One possible strategy to decrease greenhouse gas emissions in tissue production is the integration of pulp and paper mills and their energy systems at the same site. However, the environmental trade-offs associated with this strategy are still unclear. Therefore, this study aimed (i) to assess for the first time the environmental impacts of tissue paper produced at a typical industrial site in Portugal using slush and market pulp as the main raw material, and (ii) to assess the environmental effects of the integration of bioenergy produced in the pulp mill in tissue production. A life cycle assessment was conducted from cradle to gate using real data from the production of eucalyptus wood, eucalyptus pulp and tissue paper. The results showed that energy consumption in tissue paper production is the main hotspot for most impact categories. When bioenergy is used in tissue production, the environmental impacts decrease by up to 20% for categories other than marine eutrophication and mineral resource scarcity. These results are relevant to support decision making concerning sustainable practices not only for the pulp and paper industry but also for the authorities in charge of defining environmental policies, incentives and tax regulations.