This study investigated biodiesel production from industrial sludge, focusing on the feasibility and sustainability of converting waste materials into renewable energy sources. This study combines a comparative analysis of various sludge-based biodiesel production methods, highlighting both their environmental benefits and economic potential. Utilizing physical, chemical, and biological pre-treatments, this study optimizes biodiesel yield while assessing the impact of each method on the overall production efficiency. Key findings revealed that industrial sludge provides a viable feedstock, contributes to waste reduction, and reduces greenhouse gas emissions. The novel contributions of this study include a detailed economic assessment of biodiesel production from sludge and a comprehensive environmental impact evaluation that quantifies the potential sustainability benefits. Limitations related to scale-up processes are identified, and solutions to overcome these issues are discussed to improve industrial feasibility. Furthermore, the integration of sludge-based biodiesel production with other renewable energy systems has been explored as a future avenue to enhance energy efficiency and sustainability. This research contributes to a significant scientific niche by addressing scalability challenges and proposing future perspectives for sustainable biodiesel production from industrial waste.