The extensive use of fossil fuels for energy purposes causes the rapid depletion of these reserves. To overcome this problem in future, this study has been carried out to utilize waste product for the production of bio-fuel, which can be utilized as an alternate to conventional fossil fuels. Sewage sludge is the waste product of Wastewater Treatment plant, which is readily and freely available waste. In this research sewage sludge from Municipal Wastewater Treatment Plant of Bahria Town, Rawalpindi has been utilized for the production of Bio-fuel that is compatible with existing fuel reserves, through Hydro Thermal Liquefaction (HTL).In this Thesis HTL technology is used because it is most suitable technology to use high moisture content biomass as feed stock. As sludge production is continued to increase due to urbanization, industrialization therefore sludge handling is becoming very difficult day by day. To overcome this issue and to mitigate the depletion of natural reserves of energy, this study is carried out. The effect of process conditions like Temperature, Pressure,Sludge to Water Ratio along with Residence Time on the production of bio fuel through HTL of Sewage Sludge has been studied.