Bio-oil from sludge pyrolysis in a fixed bed oven is divided into water (24%), light-oil (13%), mid-oil (32%), residue (28%), and volume loss (3%) by a two-step distillation. The fuel characters of pyrolysis oil, light-oil, and mid-oil are compared with that of No. 2 fuel standard in China, and the results confirm that mid-oil is close to and can substitute for commercial diesel. Gas chromatography/mass spectroscopy is employed to determine the composition of light-oil and mid-oil. It is found that complex compounds and hydrocarbons are 16.39 and 83.61% in light-oil, while they are found to be 48.35 and 51.67% in mid-oil.