The proper handling and control of sludge, which is a byproduct generated from the treatment of wastewater and various industrial activities, presents notable environmental and human health concerns due to its potential toxicity and ecotoxicological impacts. This extensive study delves into the intricate aspects of sludge toxicity and ecotoxicology, offering a profound comprehension of the diverse pollutants and their effects on both land-based and water-based ecosystems. This study investigates the mechanisms contributing to sludge toxicity, its interactions with various environmental matrices, and its impacts on biodiversity and ecosystem functioning. The research employs a combination of laboratory experiments, field studies, and modeling approaches to gain a comprehensive understanding of these phenomena. Furthermore, this study examines various mitigation strategies and sustainable management practices aimed at reducing the detrimental effects of sludge on the environment. This study serves as an essential reference for policymakers, environmental experts, and researchers who seek to tackle the intricate challenges related to the toxicity of sludge and the field of ecotoxicology.