Municipal sewage sludge (MSS) is of interest for co-combustion with problematic fuels, such as agricultural residues, because of its high content of inorganic elements, which may improve combustion properties of such problematic fuels. Ash transformation when co-combusting MSS with the agricultural residue wheat straw was examined using a bench-scale bubbling fluidized bed (5 kW). Wheat straw pellets were combusted with MSS in both a co-pelletized form and co-firing of separate fuel particles. This was performed to examine whether there is any advantage to either approach of introducing MSS together with a problematic fuel. Co-combusting wheat straw with MSS changed the bed agglomeration characteristics from being caused by the formation of low-temperature melting potassium silicates in the fuel ash to being caused by a higher temperature melting bed ash. This shift in ash chemistry had a significant positive effect on the initial defluidization temperature. The cyclone ash and fine particulate matter changed from being dominated by alkali in general and alkali chlorides in specific to an increased phosphate and sulfate formation, which reduces the risk of alkali-related fouling and corrosion. The influence of aluminosilicates may also play a role in the improvement of fuel ash behavior.