Developing countries face serious environmental, social and economic challenges in managing different types of organic waste. Proper treatment strategies should be adopted by solid waste management systems in order to address these concerns. Among all of the treatment options for organic waste, composting is the most approved method as an effective strategy to divert solid waste from landfills. This experimental research aimed to examine the potential of producing compost from source-separated municipal organic waste in Shiraz, Iran. Market waste (fruits and vegetables) and garden waste (plant residues) were used as the raw input materials. They were subjected to the windrow pile composting method in an open site area. The process was monitored against several physical, chemical and biological parameters. In-situ measurements (temperature and moisture content) were carried out on a daily basis. Sampling and lab analyses were conducted over the period of the biological treatment. The final product was of acceptable moisture and nutrient levels, pH, Electrical Conductivity (EC), and Carbon/Nitrogen ratio. All of the analyzed compost samples had lower concentrations of heavy metals than the Iranian and German standards. Overall, the results obtained revealed that composting is a promising method for municipal organic waste treatment. The findings also imply the effectiveness of the source-separation collection method in the production of high-quality compost.