This research article published by IWA publishingSludge from textile effluent treatment plants (ETP) remains a challenge for many industries due to inefficient and limited waste management strategies. This study explores the potential of using anaerobic digestion (AD) to improve the environmental quality of textile ETP sludge. The AD of ETP sludge is affected by the low C/N ratio (3.7), heavy metal content, and toxicity. To improve the process, co-digestion of ETP sludge with different substrates (sewage sludge, cow dung, and sawdust) under mesophilic conditions (37 °C), followed by a thermochemical pretreatment was assessed. The results showed that anaerobic co-digestion of the textile sludge with the co-substrates is effective in reducing pollution load. It was found that organic matters degraded during the 30-day AD process. The chemical oxygen demand and biological oxygen demand reduction was in the range of 33.1–88.5% and 48.1–67.1%, respectively. Also, heavy metal (cadmium, lead, iron, and, mercury) concentration was slightly reduced after digestion. Maximal biogas yield was achieved from co-digestion of textile sludge and sewage sludge at a mixing ratio of 3:1, 1:1, and 1:3, and methane content was respectively 87.9%, 68.9%, and 69.5% of the gas composition. The results from this study show that co-digestion will not only reduce the environmental pollution and health risks from the textile industry but also recover useful energy.