Sewage sludge was dried in a rotary drum dryer under superheated steam. Particle size and moisture content were shown to have significant influences on sticking and agglomeration of the materials. Pouring partially dried sludge (70–80% moisture content, wet basis) directly into the screw feeder of the drum dryer resulted in a significant sticking to the surface of the drum and the final particle size of the product was greater than 100 mm in diameter. The moisture content of this product was slightly less than its initial value. To overcome this issue, the sludge was mixed with lignite at variety ratios and then chopped before being introduced to the feeding screw. It was found that mixing the sludge with lignite and then sieving the chopped materials through a four millimetre mesh sieve was the key to solve this issue. This technique significantly reduced both stickiness and agglomeration of the material. Also, this enabled for a significant reduction in moisture content of the final product.