In this paper, the application of magnetite-nanoparticles and a microbial fuel cell (MFC) was studied on the anaerobic digestion (AD) of sewage sludge. The experimental set-up included six 1 L biochemical methane potential (BMP) tests with different external resistors: (a) 100 Ω, (b) 300 Ω, (c) 500 Ω, (d) 800 Ω, (e) 1000 Ω, and (f) a control with no external resistor. The BMP tests were carried out using digesters with a working volume of 0.8 L fed with 0.5 L substrate, 0.3 L inoculum, and 0.53 g magnetite-nanoparticles. The results suggested that the ultimate biogas generation reached 692.7 mL/g VSfed in the 500 Ω digester, which was substantially greater than the 102.6 mL/g VSfed of the control. The electrochemical efficiency analysis also demonstrated higher coulombic efficiency (81.2%) and maximum power density (30.17 mW/ m2) for the 500 Ω digester. The digester also revealed a higher maximum voltage generation of 0.431 V, which was approximately 12.7 times the 0.034 V of the lowest-performing MFC (100 Ω digester). In terms of contaminants removed, the best-performing digester was the digester with 500 Ω, which reduced contaminants by more than 89% on COD, TS, VS, TSS and color. In terms of cost-benefit analysis, this digester produced the highest annual energy profit (48.22 ZAR/kWh or 3.45 USD/kWh). This infers the application of magnetite-nanoparticles and MFC on the AD of sewage sludge is very promising for biogas production. The digester with an external resistor of 500 Ω showed a high potential for use in bioelectrochemical biogas generation and contaminant removal for sewage sludge.