This study aimed to determine the feasibility of pyrolysis scenarios as sewage sludge treatment processes through cradle-to-gate life-cycle assessment and additional energy consumption, carbon emission, and economic benefit analyses, considering circular economy principles. The examined pyrolysis scenarios include slow pyrolysis with various residence times to produce activated carbon (AC) or biochar and fast pyrolysis to produce bio-oil, all with internal gas energy recovery. The functional unit (FU) in this study comprises 1000 kg of dried sludge entering the pyrolysis reactor. The overall evaluation and new product application routes address gaps in current studies on sludge treatment via pyrolysis. Environmentally, the bio-oil (-0.31 kg CO2-eq/kg FU) and biochar (-0.05 kg CO2-eq/kg FU) scenarios show considerable improvement over contemporary pyrolysis and other conventional sludge treatment methods. The AC scenarios have higher toxicity but lower carbon emissions (1.50–1.70 kg CO2-eq/kg FU) than contemporary AC production processes. Chemical reagent usage has significant effects on the environmental burden of AC production processes. The biochar and bio-oil pyrolysis scenarios achieve net energy recovery through product applications. Although the AC scenarios still require energy input, this demand can be significantly reduced by optimising moisture removal processes. Operating cost analysis indicates that the examined pyrolysis scenarios are potentially profitable. Primary product yield and market value are significant factors determining the net profit of these pyrolysis scenarios, but further assessment of capital costs is required. This study shows that bio-oil and biochar pyrolysis are eco-friendly sewage sludge treatment methods.