Valorization of industrial by-products like sodium lignosulfonate (SL) offers a sustainable strategy for environmental remediation. This study provides a systematic evaluation of the effects of SL addition on humification and copper (Cu) behavior during municipal sludge composting. The effects of SL addition at 0% (CK), 3% (T3), and 9% (T9) dry weight over a 60-day composting period were investigated. The 9% SL treatment (T9) significantly accelerated compost maturity, achieving a germination index of 96.4% compared to 85.9% in the control. EEM-PARAFAC analysis revealed that SL addition promoted the transformation of protein-like and quinone-like intermediates into stable HA-like substances. Consequently, the final HA content and degree of polymerization in T9 were substantially higher than in the control. Concurrently, enhanced humification was accompanied by a significant reduction in Cu bioavailability. The diethylenetriaminepentaacetic acid-extractable (bioavailable) Cu in T9 was reduced to 96.40 mg/kg, a 66% reduction from its initial value and significantly lower than the 150.73 mg/kg in the final control compost. Pearson analysis confirmed a strong negative correlation between HA content and bioavailable Cu. The findings suggest that SL addition is an effective amendment for producing safer, higher-quality compost, offering a novel strategy for the synergistic valorization of industrial and municipal waste streams.