The experiment of sewage sludge composted as fertilizer for Zoysia japonica was conducted, and the results showed that Cd content in soil was lower than 0.3 mg.kg-1 under the condition of the fertilizer application lower than 45 t.hm-2 (dry weight) and the pH value of soil lower than 6.5 (Cd as the limiting factor for the amount of fertilizer application). NO3(-)-N content of groundwater was lower than the standard of the first class groundwater (10 mg.kg-1). The contents of organic matter, available N, total N, and total P were higher than those under control by 16%, 78%, 61%, and 140%, respectively. The biomass of Zoysia japonica was increased two times against the control. Therefore, sewage sludge utilized as fertilizer for grassland might be a valuable approach.