The output of sewage sludge has been increasing in recent years in China. Traditional treatment methods, such as incineration and landfilling, cannot meet the requirement of sustainability in various industries. As one of the efficient recycling methods for sewage sludge, previous studies have proven that sewage sludge ash (SSA) can be used as a supplementary cementitious material to partly replace cement in mortar or concrete. To understand the performance of SSA comprehensively, which contributes to its better utilization, this study reviews the basic properties of SSA and the effect of SSA on the performance of mortar. Firstly, the basic properties of SSA, such as chemical composition, heavy metal content, activity, and microstructure, are investigated. Then, the effects of SSA on the workability, setting time, and mechanical properties of mortar are reviewed. The results show that the particle size distribution of SSA is in the range of 2.5–250 μm. SSA contains active oxides such as SiO2, Al2O3, Fe2O3, and CaO, which are similar to fly ash, indicating that SSA has potential pozzolanic properties. The leaching concentration of SSA is much lower than the required values in the relevant specifications, leading to an allowable environment influence. The incorporation of SSA has a negative impact on the workability, setting time, water absorption, compressive strength, and flexural strength of the mortar. The 90-day compressive strength of the SSA mortar is 71.72–98.6% of the cement mortar, when the replacement ratio of SSA is in the range of 10–30%. However, performance can be improved by increasing the grinding time or adding an admixture. The drying shrinkage and capillary water absorption of SSA mortar are higher than those of normal mortar, which is mainly related to an increase of porosity. In conclusion, it is proven that SSA can be used to partly replace cement in mortar with appropriate properties. Source and production process have a great influence on the basic properties of SSA, leading to varied, even opposite, effects on the mechanical properties and durability of mortar. In the future, the selected raw materials and a standard preparation method should be proposed for promoting the application of SSA.