Escalating with rapid population growth and urban sprawl, unregulated Municipal Solid Waste (MSW) poses serious threats to public health and environmental safety. The current study examines the performance and physiological features of MSW and evaluates its potential as a renewable energy source in the Bannu region of Khyber Pakhtunkhwa (KPK) province, Pakistan. Depending on the average MSW generation of 0.439 kg/capita/day, the daily production of MSW in the city can reach up to 2000 tons/day. However, its safe treatment is inhibited by the lack of planning, public services, political determination, and public awareness. Various samples of MSW were collected for characterization/segregation purposes. Amounts of MSW in Bannu have been found to be declining through the use of decaying material, plastic bags of nylon, cloth, nappy, and paper. A close assessment of the recycling potential of MSW was performed by obtaining temperature values from combustion. The maximum energy output from MSW combustion was found to be 13369.935 kJ/kg. The power output of 44.29 MW is continuously tested from 2000 ton-of-MSW/day. The results of this study are expected to help policymakers develop management strategies for MSW in order to utilize these wastes for power generation.