To develop an active microbial activity quickly developing stabilizing thermophilic temperatures during the composting of wastewater sludge, the bulking agent (BA) plays a major role in establishing the recipe structure, exposed particle surface area and porosity. To optimize the biodegradation of a sludge compost recipe, the objective of this paper was to study the effect and interaction of initial moisture content (MC) and BA particle size distribution. Three 300 L insulated laboratory composters were used to treat two series of ten (10) recipes with different combinations of MC and BA particle size distribution. Using a to wastewater sludge to BA dry mass ratio of 1/6, the ten (10) recipes were repeated using two BA, residues recycled from a commercial sludge composting plant and crushed wood pallets. Each four week trial monitored O(2) uptake, temperature, compost consolidation and airflow distribution. The Central Composite Factor Design method produced a model from the results estimating the impact of a wider range of MC and BA particles size distribution. The MC directly affected the total O(2) uptake and therefore, organic matter biodegradation. The BA particle size distribution influenced compost consolidation with a MC crossed effect. Both BA particle size distribution and MC influenced compost airflow dispersion. Composting was optimized using the BA consisting of recycled green waste residues with particle size of 20-30 mm and a 55% MC. The predictive models suggested the need for further optimization of sludge and wood residue composting recipe.