Increasing problems related to disposal and utilization of the organic waste, also this separated from municipal waste contribute to a clear interest in various methods for its handling. The EU Directive on waste disposal was issued in April 1999 (a corresponding Polish resolution in 2003) that enforces a gradual reduction of organic waste content to approximately 10% in 2015 both in the Member States Countries. This requirement sets up appropriate strategic actions aimed at selection and disposal of the organic fraction of municipal waste. Application of combined mechanical and biological methods of waste processing in medium-sized regional waste processing plants may serve as an effective altemative aiming at the reduction of waste volume and its safe landfilling. As the experiences of the countries highly advanced in application of innovative solutions in waste management show, implementation of the presently used conventional methods for waste recycling and utilization will be maintained also in the future, with some of the technologies becoming subject to improvements and thus gaining advances in the technical level of solutions in individual methods. Beside the principal objective of reducing the volume of municipal waste disposed at the landfills and the need for its utilization, recycling of organic waste (also this separated from municipal waste) should have its economic aspect since any activity in this area will sooner or later be subject to evaluation using economic criteria. Generally both methods are considered effective on condition they are operated appropriately and bring specific measurable effects. Especial biological methods of biowaste processing: composting and digestion have already got a recognised position in waste management. The proposed composting technologies for organic waste allow producing compost of high-quality and a wide spectrum of applications. Application of technologies for anaerobic digestion of organic matter in bioreactors under specific conditions has become more and more common enabling production of biogas with a potential to be used for energetic purposes and a residue of fertilizing properties. Both methods represent specific advantages and disadvantages. Selection of a composting or digestion alternative depends on a number of criteria and first of all on local, area-specific conditions that should be taken account of when developing plans addressing organic waste problems.