In this study, biochar derived from sewage sludge was applied to remediate Cu and Cd co-polluted soil in semi-arid areas for the first time, in which the effects of biochar on the improvement of soil physicochemical and biological properties as well as the immobilization of Cu and Cd were investigated. Soil water holding capacity increased by 0.22–2.74%, soil CEC increased by 0.52–4.06 units, soil SOM content increased by 1.41–5.97 times, and urease and catalase activities increased by 0.012–0.032 mg·g−1·24 h−1, 0.18–2.95 mg H2O2·g−1, but soil pH increased only slightly by 0.69 units after biochar application. In addition, although the total content of these two metals in the soil increased with the use of biochar, the content of DTPA-Cu and Cd decreased by −0.128–0.291 mg/kg, 0–0.037 mg/kg, with the increase in biochar application, and the content of acid-soluble Cu in the soil decreased from 27.42 mg/kg to 3.76 mg/kg, the mobility and bioavailability of these two metals in the soil decreased. Finally, the complexation of organic functional groups with the soil dominates the immobilization process of metals, especially Cu. These findings suggest that biochar from sewage sludge can effectively improve soil quality and remediate heavy metal-contaminated soils in semi-arid regions. Meanwhile, the use of sludge-based biochar for the remediation of contaminated soils also provides a new method for the safe disposal of sewage sludge and a new way for sustainable development. In subsequent studies, methods such as modification are recommended to improve the efficiency of sludge-based biochar for the removal of Cu and Cd.