In the present study, surface-active compounds (SAC) were extracted from biosolids using an alkaline treatment process. They were tested for their remediation efficiency of crude oil-contaminated sediment soil and was compared with Triton x-100. The SAC exhibited a similar soil washing efficiency to that of the commercial Triton x-100, and under the optimized soil washing parameters, SAC exhibited a maximum of 91% total polycyclic aromatic hydrocarbons removal. Further, on analysing the toxicity of the soil residue after washing, it was observed that SAC from biosolids washed soil exhibited an average of 1.5-fold lesser toxicity compared to that of Triton x-100 on different test models-earthworm, a monocot, and dicot plants. The analysis of the key soil parameters revealed that the commercial surfactant reduced the soil organic matter and porosity by an average of 1.3-fold compared to SAC. Further, the ability of surfactants to induce toxicity was confirmed by the adsorption of the surfactants on the surface of the soil particles which was in the order of Triton x-100 > SAC. Thus, this study suggests that SAC can be applied as an effective bioremediation approach for contaminated soil for a greener and sustainable ecosystem.