NOVELTY - Method for recycling urban domestic garbage and sludge involves transferring the garbage into a bag breaking machine to carry out bag breaking treatment, screening garbage subjected to bag breaking treatment through drum, magnetically-separating and crushing screen underflow, winnowing substances in screen into organic substances, inorganic substances and waste plastics, magnetically-separating, crushing organic substances, mixing crushed organic substances and crushed screen underflow with sludge, forming sludge mixture, treating sludge mixture by removing water, and drying.    USE - Method for recycling urban domestic garbage and sludge (claimed). The organic substance is used for forming carbon products. The inorganic substance is used for forming building material. The waste plastic is used for forming regenerated diesel oil.    ADVANTAGE - The method enables efficiently recycling of urban domestic garbage and sludge with excellent workability, by simple method.    DETAILED DESCRIPTION - Method for recycling urban domestic garbage and sludge involves manually sorting domestic garbage, transferring the garbage into a bag breaking machine to carry out bag breaking treatment, screening the garbage subjected to bag breaking treatment through a drum, magnetically separating and crushing the screen underflow to obtain the crushed screen underflow, winnowing the substances in the screen in order to divide the winnowed substances into organic substances, inorganic substances and waste plastics, carrying out magnetic separation, manual sorting and crushing to the inorganic substances to obtain the materials to be used as building materials, carrying out high-temperature cracking, crude oil recovery and crude oil refining to the waste plastics to obtain regenerated diesel oil, carrying out magnetic separation, manual sorting and crushing on the organic substances to obtain the crushed organic substances, mixing the crushed organic substances and the crushed screen underflow with the sludge to obtain a sludge mixture, and treating the sludge mixture by removing water, and drying.