The continuous development of drinking water networks is leading to the production of increasing amounts of waste water and sewage sludge. Secondary-treated sewage sludge is called biosolids and can be used as fertilizers in agriculture due to its rich nutrient content. The aim of this study was to evaluate the effects of biosolids mixed with an eroded soil on the morphology, physiology and synthesis of bioactive compounds in basil. The study was performed in pots under laboratory-controlled conditions. In total, four substrates were tested: S1 biosolids 100%, S2 biosolids 15% + eroded soil 85%, S3 eroded soil 100% and S4 control (commercial growing substrate). At the morphological level, a significant increase in plant height, number of branches, fresh biomass and dry biomass was found in the S2 variant. At the physiological level, photosynthesis and chlorophyll content did not vary significantly, but the quantum yield of PSII (ΦPSII) was significantly higher at S1 and S2. The oxidative status evaluated by determining the activity of SOD, POD and CAT enzymes was better in S2 and S3 compared to S3. Regarding the synthesis of bioactive compounds (rosmarinic acid, caffeic acid and gallic acid), it was stimulated in S1 and S2. In conclusion, biosolids application stimulated the stress response mechanisms in basil plants by increasing the quantum yield chlorophyll fluorescence and catalase activity, alleviating the negative effects of eroded soil.