Proper treatment and careful management of sewage sludge are essential because its disposal can lead to adverse environmental impacts such as public health hazards, as well as air, soil, and water pollution. Several efforts are being made currently not only to safely dispose of sewage sludge but also to utilize it as an energy source. Therefore, in this study, initiatives were taken to valorize sewage sludge cake by reducing the moisture content and increasing the calorific value by applying a hydrothermal treatment technique for efficient energy recovery. The sludge cake treated at 200 °C for 1 h was found to be the optimum condition for hydrothermal carbonization, as, in this condition, the caloric value of the treated sludge increased by 10% and the moisture content removed was 20 wt.%. To recover energy from the hydrothermally treated sludge, a gasification technology was applied at 900 °C. The results showed that the product gas from hydrothermally treated sludge cake had a higher lower heating value (0.98 MJ/Nm3) and higher cold gas efficiency (5.8%). Furthermore, compared with raw sludge cake, less tar was generated during the gasification of hydrothermally treated sludge cake. The removal efficiency was 28.2%. Overall results depict that hydrothermally treated sewage sludge cake could be a good source of energy recovery via the gasification process.