In recent years, the sludge produced by municipal sewage treatment plants has become an important recyclable resource for producing green building materials. After the systematic processing of incineration and particle formation, the sintered sludge can be processed into fine lightweight aggregate to produce building mortar with the controlled leaching of heavy metals and radioactivity. In this paper, to increase its economic and environmental benefits, mortar with sintered sludge aggregate was made by cement admixing of fly ash or limestone powder. The water-to-binder ratio was set at three levels—0.82, 0.68, and 0.62—and either flay ash or limestone powder was used to replace equal masses of cement at 10%, 20%, or 30%. Eighteen groups of mortar were studied to evaluate their workability, air content, compressive strength, tensile adhesive strength, dry density, and thermal conductivity. The results indicate that with a proper water-to-binder ratio, and the replacement ratio of fly ash or limestone powder, the mortar can be produced with good workability, consistency, water-retention rate, layering degree, and setting time. The mortar made with sintered sludge lightweight aggregate, designated by the mix-proportion method for conventional lightweight aggregate mortar, did not meet the target strength, although the compressive strength of mortar was no less than 3.0 MPa, which meets the strength grade M2.5. The tensile adhesive strength reached 0.18 MPa. The mortar was super lightweight with a dry density less than 400 kg/m3, and a thermal conductivity within 0.30~0.32 W/(m⋅K). The effects of water-to-binder ratio and replacement ratio of fly ash or limestone powder on the above properties are discussed with test results. The study provides a basis for using sintered sludge lightweight aggregate for building mortar.