Abstract: Growth conditions of rotting bacteria in municipal sludge were studied.The results showed that the microbial inocula L201 grew well under pH 7.7 at 58-65℃,and the optimal growth temperature for the microbial inocula L301 was 52-55℃.Less air ventilation was required during the initial than the other stages of the aerobic compost in an enclosed chamber.Application of the organic fertilizer LC301 promoted eucalyptus growth.The technology developed in this experiment was suitable for sludge treatment of middle and small municipal wastewater treatment facilities or livestock farms.