Large amounts of sewage sludge (SS) and wetland plant wastes are generated in the wastewater treatment system worldwide. The conversion of these solid wastes into biochar through co-pyrolysis could be a promising resource utilization scheme. In this study, biochar was prepared by co-pyrolysis of SS and reed (Phragmites australis, RD) using a modified muffle furnace device under different temperatures (300, 500, and 700 °C) and with different mixing ratios (25, 50, and 75 wt.% RD). The physicochemical properties of biochar and the transformation behaviors of phosphorus (P) and heavy metals during the co-pyrolysis process were studied. Compared with single SS pyrolysis, the biochar derived from SS-RD co-pyrolysis had lower yield and ash content, higher pH, C content, and aromatic structure. The addition of RD could reduce the total P content of biochar and promote the transformation from non-apatite inorganic phosphorus (NAIP) to apatite phosphorus (AP). In addition, co-pyrolysis also reduced the content and toxicity of heavy metals in biochar. Therefore, co-pyrolysis could be a promising strategy to achieve the simultaneous treatment of SS and RD, as well as the production of value-added biochar.