Liability to prevent the consequences of an unhealthy situation due to accumulating toxic and hazardous emissions caused by open dumping of municipal solid waste with increasing urbanization has necessitated a renewed thinking on waste disposal. Grate-fired incineration systems were adopted by urban management in the past and present, but with criticism due to the formation of airborne emissions. Improved combustion methods like fluidized beds are now propagated because of current requirements like efficient energy recovery potential, stricter emission norms, adaptability with urban growth, adaptability to co-firing with other waste like biomass, edible oil wastes or industrial effluent, and integration with conventional energy generation. Such a comprehensive and futuristic approach is more sustainable for the community. A multi-criteria decision-making tool is used to identify the best technology option between grate combustion and fluidized bed combustion for disposing and energy recovery from waste. A total of 10 different collection and disposal options involving two combustion methods, namely, grate combustion and fluidized bed method, are considered. Utilization of the energy is done for three end uses, namely, power generation, water distillation, and district cooling. Two different regions in an arid climate zone are considered for this study under two types of scenarios, namely with recycling and without recycling. The different options are prioritized based on their overall ranking using five major performance factors.