Different options for managing the organic fraction (OF) of municipal solid waste generated in a given urban area were analyzed by life cycle assessment (LCA) for different source segregation (SS) intensities ranging from 0 to 52%. The best management option for processing the OF remaining in the residual organic fraction (ROF) for the different SS intensities was by incineration. Landfilling and mechanical biological treatment (MBT) of ROF gave higher impacts. Aerobic treatment alone or combined with anaerobic digestion (AD) for processing the source-segregated organic fraction (SSOF) led to relevant environmental impact reduction even if the difference between the two options was quite negligible. The weighted impact showed that scenarios using incineration always gave environmental gains, whereas there was a higher environmental burden with the scenarios using MBT.