For the incorporation of the hydrothermal liquefaction (HTL) process into wastewater treatment plants (WWTPs), the liquid by-product of the process, named HTL aqueous, creates the biggest bottleneck because of its high volume and contaminant levels. In this study, an extensive characterization of various HTL aqueous samples, obtained from the liquefaction of mixed sludge cake at 290–360 °C and 0–30 min, was performed. From the most to least abundant, compounds found in HTL aqueous samples were N-heterocyclics, volatile fatty acids (VFAs), amides, ketones, amines, and phenolics. The characteristics that make HTL aqueous suitable for biological treatment were pH, alkalinity, macro- and micro-nutrients. However, along with N-heterocyclic compounds, total ammonia levels of 3.9–7.1 g/L and total phenol levels of 1.5–2.3 g/L were identified as compounds that would potentially inhibit biological treatment processes. The chemical oxygen demand (COD) levels of HTL aqueous samples were 87–103 g/L. HTL aqueous obtained under 325 °C-0 min (no retention at 325 °C) condition was identified as the most suitable for biological treatment owing to its high VFA (17 g/L), carbohydrate (827 mg/L), and low phenol (1.6 g/L) concentrations. By increasing HTL reaction severity (temperature and retention time), COD, dissolved protein, total carbohydrate, total phenol, and total short-chain VFA levels decreased, whereas total ammonia, pH, alkalinity, valeric acid, and iso-valeric acid concentrations increased. Regression analysis was used to obtain equations that reveal patterns between HTL reaction parameters and aqueous phase characteristics. Overall, a pretreatment application was found necessary for the detoxification of HTL aqueous before biological treatment.