A utilization network optimization model toward sustainable municipal solid waste incineration fly-ash (IFA) management is first established with the integration of hybrid life cycle assessment (HLCA) and multiobjective optimization (MOO), taking Shanghai as a case. For technology selection, we focus on two emerging nonthermally processed IFA utilization technologies and the most widely used cement kiln coprocessing. By HLCA results, byproduct offsetting could significantly improve the environmental performance of IFA utilization ways, while nonthermal utilization has much lower global warming potential than cement kiln coprocessing, regardless of the allocation of byproducts or not. By combining HLCA with MOO, the trade-off solutions on the Pareto curve provide optimal decision-making alternatives for the IFA utilization network under multifactor constraints, including technology selection, site location, feedstock supplier, logistics under capacity constraints, and planning restrictions. The results show that the mixed use of IFA-to-brick and wastewater discharge and IFA-to-brick and salt technology would be the most preferable choice from a climate perspective, while IFA-to-brick and salts would be the most profitable one. In addition, since the market acceptance of nonthermally processed byproducts will affect the optimization results through price shocks, additional marketing policies and industrial symbiosis approaches are essential to develop sustainable IFA utilization technology under win-win targets of environment and economy.