In municipal wastewater treatment plants (WWTPs), large number of microplastics (MPs) accumulated in wastewater migrated into sludge. Thermal hydrolysis of sludge (THS) was one of the most promising processes for promoting changes in molecular structure of MPs. The physicochemical properties and degradative pathways of polyethylene (PE) and polyethylene terephthalate (PET) in THS under different temperatures were studied in this paper. It was found that there was a mutual promotion relationship between sludge degradation and MPs aging. The presence of PE and PET MPs not only increased organics and nitrogen concentrations of sludge filtrate, but also enhanced the transformation of organics like proteins. Sludge accelerated the aging of PE and PET MPs. The friability of PE and PET MPs was increased with more surface fragmentation and breakage under the temperature of 120 ℃−180 ℃. Moreover, PE and PET MPs occurred thermal oxidation and reduction reactions with significant chemical structure changes at 160 °C and 140 °C, respectively. Pristine PE and PET had multiple carbon and oxygen active sites. During THS reaction, not only PE and PET reacted hydrolysis/decomposition to produce short-chain hydroxyl-terminated compounds, but also hydrothermal shear broke the polymer molecules and formed carboxyl-terminated and olefin-terminated low-carbon chains. This study provided some promising sign for in situ microplastic removal during sludge treatments.