Objective: This study aimed to assess the effectiveness of microwave-H₂O₂ treatment for municipal sludge processing, focusing on optimizing pollutant removal while minimizing the formation of undesirable byproducts. Materials and Methods: This study involved collecting 273 secondary aerobic sludge samples from the Saldin government municipal wastewater treatment plant in Iraq, during spring 2024. Samples were transported at 4°C for laboratory analysis. A factorial experimental design assessed the effectiveness of 16 microwave-H₂O₂ treatment conditions, varying hydrogen peroxide concentrations (0, 1, 2, and 4 mL/L), treatment temperatures (50, 70, and 90°C), and exposure durations (0, 2, 4, and 6 minutes). Pollutant removal was evaluated using standardized protocols: COD via titrimetry, TP via the ascorbic acid method, and TKN/NH₃-N through macro-Kjeldahl and salicylate methods. Additional physicochemical parameters such as pH, total solids, and VFAs were measured. Results: This study demonstrates that microwave-H₂O₂ treatment effectively reduces organic pollutants in sludge, achieving an 87.7% decrease in chemical oxygen demand (COD) at 50°C with 1 mL/L H₂O₂. It also significantly removes phosphorus (75%) and nitrogen (40%), though ammonia accumulation at higher intensities poses challenges, while enhancing sludge biodegradability. Operation parameters significantly influence treatment efficacy. Mild conditions (50°C, 1 mL/L H₂O₂) effectively remove organic pollutants but may necessitate subsequent nitrogen management. High-intensity conditions (90°C, 4 mL/L H₂O₂) increase ammonia risk yet enhance sludge hydrolysis. Process optimization requires balancing pollutant removal with byproduct utilization, as no single setting optimizes both. Conclusion: These findings offer wastewater treatment facilities evidence-based guidelines for optimizing processes, balancing organic removal and sludge hydrolysis efficiency.