In this paper, we propose a concise but general two-dimensional model based on the penetration model in order to simulate the heat and mass transfer and drying kinetics of sludge in the paddle dryer. The sludge control equations were developed to simulate the heat and mass transfer of sludge and the penetration model was introduced to describe the mixing of sludge. Compared to the experimental results in the existing literature, the drying kinetics simulated simulated by the present model were in good agreement with the experimental data under various operation conditions. The effects of four key parameters on drying kinetics in the paddle dryer were studied. The results showed that the water content increased with the increase of sludge flowrate and the decrease of wall temperature and sludge density. Furthermore, the stirring velocity had little effect on the drying kinetics of the sludge. The present study contributes to the better understanding of the sludge drying kinetics and provides guidance for the optimal design of industrial paddle dryers.