This paper reports a study on the structural characterization, structural transformations with temperature, and non-isothermal degradation kinetics of urban drinking water sludge. Chemical composition analysis by quantitative energy dispersive X-ray fluorescence suggests that the sludge is mainly inorganic in nature with small fraction of organic matter. Structural analysis of the sludge by SEM, XRD, and FTIR reveals structural complexities of the sludge. Thermal treatment of the sludge in the long temperature range shows that the sludge is capable of exhibiting different physico-chemical transitions. The reaction profile of the sludge thermal degradation is evaluated by TGA/DTG analysis which has been found considerably complex comprising many reactions. The thermal degradation kinetics is performed by thermoanalytical data of the sludge obtained by DSC using solid state kinetics approaches. The mechanistic information extracted from kinetic analysis fairly agrees with the structural analysis results. The present study reveals that the analyzed drinking water sludge has significant potential to be employed in the materials of construction.