In Portugal, the number of fires and the size of burnt areas are rising dramatically every year, increasing with improper management of agroforestry wastes (AFRs). This work aims to study the composting of these wastes with minimal operational costs and understand the environmental impact and the compost application on burnt soil. Thus, a study of life cycle assessment (LCA) was carried out based on windrow composting processes, considering the avoided environmental impacts associated with the end-product quality and its application as an organic amendment. Three composting piles were made with AFRs from the Residual Biomass Collection Centre (RBCC) in Bodiosa (Portugal). Sewage sludges (SS) from an urban wastewater treatment plant were used as conditioning agent. One pile with AFRs (MC) and another with AFRs and SS (MCS) were managed according to good composting practices. Another pile with the AFRs was developed without management (NMC), thus with a minimal operational cost. Periodically, it was measured several physical and chemical parameters according to standard methodologies. Eleven environmental impacts of compost production, MC and MCS, were analyzed by a LCA tool, and their effect on the growth of Pinus pinea was evaluated, using peat as reference. Composting evolution was expected for both piles. Final composts, MC and MCS, were similar, complying with organic amendment quality parameters. Compost NMC, with no operational management, showed the highest germination index. Piles MC and MCS showed similar environmental impacts, contributing to a negative impact on global warming, acidification, and eutrophication. Greater growth was obtained with application of MCS, followed by MC, and finally, peat. Composting is a sustainable way to valorize AFRs wastes, producing compost that could restore burnt soils and promote plant growth and circular economy.