In this study, two scenarios of a municipal wastewater treatment plant (WWTP) are presented, which include the integration of the hydrothermal carbonization (HTC) process into the sludge line as a post-treatment of the anaerobic digestion (AD) process. The objective of the simulation is to investigate the performances of AD + HTC treatment to reduce sludge production and improve nutrient and energy recovery. For this purpose, the scheme of an under-construction WWTP was considered, named Trento 3 (Trento, Italy) and with a treatment capacity of 300,000 PE. In the first scenario, the HTC process was fed with thickened sludge from the Trento 3 WWTP, while in the second scenario, dewatered sludge from other local WWTPs was also used as feedstock for the HTC process. Both scenarios allowed to obtain a considerable sludge reduction ranging from 70 to 75% with a notably increase in the biogas production up to 47%, due to the recycling of HTC liquor (HTCL) to the anaerobic digester. Considering nutrients recovery, all the phosphorus and nitrogen present in the HTCL could be used for struvite precipitation with an average yearly gain of 1 million euros. Moreover, the introduction of HTC in the Trento 3 WWTP could allow a reduction in the sludge management costs of up to 2 M€/year. Graphical Abstract