Low‐carbon alkaline thermal hydrolysis of sewage sludge for the production of high‐quality plant‐growth‐promoting nutrients and biostimulants is a growing concern for sludge resource utilization in agriculture. Thus, this study aims to investigate functional characteristics and soil biochemical effects of sewage sludge‐derived nutrients and biostimulants (SS‐NB). The content of heavy metals in SS‐NB decreased by 47.39–100%, and an increase in soil protease, invertase, and soil nutrient utilization rates are observed in SS‐NB groups. SS‐NB substituted for chemical fertilizer increased the diversity and evenness of microbial community and reduced the abundance of the soil‐borne bacterial genus Arthrobacter. The dominant community of SS‐NB100 group is mainly enriched in Microvirga, Ensifer, Novosphingobium, Bosea and Ellin6055, which are principally beneficial symbiotic bacteria of plants and participated in C and N cycles. Moreover, SS‐NB reduced the accumulation of Ktedonobacteria and Nitrosospira, which are involved in the production of CO2 and N2O, and also enhanced the coordination of soil microorganisms with enzyme activities and nutrient utilization rate. In conclusion, the results suggest that SS‐NB exerts a positive effect on reducing greenhouse gas emissions and preventing soil‐borne diseases, and can further enhance collaboration with soil enzyme activity and soil nutrient utilization by stimulating soil microorganisms.