The invention relates to a method for processing muck in municipal domestic waste. The method comprises the following steps that (1) muck, animal feces, plant straw powder, a leavening agent and industrial alcohol are mixed to form a first mixed ingredient; after the first mixed ingredient is fermented in a fermentation tank for seven times, and a final fermentation product is subjected to residue-liquid separation, wherein a liquid-state part is fed into a sealing tank for storage as a fertile solution, and a solid-state part is fed into a second mixing tank as fertile soil; (2) the fertile soil and edible waste disposables are mixed to form a second mixed ingredient, and the second mixed ingredient is fed into an earthworm pool for breeding earthworms; and (3) the second mixed ingredient continues to be decomposed in the earthworm pool and is eaten by the earthworms to form granular vermicompost, the vermicompost and the uneaten part of the second mixed ingredient are subjected to screening and separation, and the remaining uneaten part serves as organic soil. According to the muck processing method, muck does not need to be buried, safety performance and environmental protection performance are achieved, waste is reutilized, an organic ecosphere is created, and the method benefits the nation and the people.