Co-liquefaction of municipal sewage sludge (MSS) and lignocellulosic biomass such as rice straw or wood sawdust at different mixing ratios and the characterization of the obtained bio-oil and bio-char were investigated. Synergistic effects were found during co-processing of MSS with biomass for production of bio-oil with higher yield and better fuel properties than those from individual feedstock. The co-liquefaction of MSS/ rice straw (4/4, wt) increased the bio-oil yield from 22.74% (bio-oil yield from liquefaction of MSS individually) or 23.67% (rice straw) to 32.45%. Comparable increase on bio-oil yield was also observed for MSS/wood sawdust mixtures (2/6, wt). The bio-oils produced from MSS/biomass mixtures were mainly composed of esters and phenols with lower boiling points (degradation temperatures) than those from individual feedstock (identified with higher heavy bio-oil fractions). These synergistic effects were probably resulted from the interactions between the intermittent products of MSS and those of biomass during processing.