This study reports the use of deep‐eutectic‐solvent‐ (DES‐) assisted hydrothermal carbonization (HTC) to disrupt the floc structure of sewage sludge (SS) for deep carbonization, with the resulting hydrochars employed in the preparation of formaldehyde‐free plywood bioadhesives. Sewage‐sludge‐based bioadhesive exhibits an excellent wet shear strength, complying with the requirements of Chinese national standard GB/T 9846–2015 (≥0.7 MPa). The molecular weight of proteins and the formation of covalent bonds via dehydration have a notable role in improving adhesive performance (wet shear strength). The Maillard reaction is a key reaction during HTC to destroy the secondary structure of proteins, resulting in the release of more OH and NH2. The main reaction during hot‐press treatment is dehydration. High ash content in bioadhesives improves flame resistance potential, particularly on addition of DES. A plausible mechanism is proposed for this. This work provides a new method for the valorization of SS‐derived hydrochars and contributes to the development of greener formaldehyde‐free wood bioadhesives.