Currently, the environment and its natural resources face many issues related to the depletion of natural resources, in addition to the increase in environmental pollution resulting from uncontrolled waste disposal. Therefore, it is crucial to identify practical and effective ways to utilize these wastes, such as transforming them into environmentally friendly concrete. Artificial lightweight aggregates (ALWAs) are gaining interest because of their shift in focus from natural aggregates. Researchers have developed numerous ALWAs to eliminate the need for natural aggregates. This article explores the diverse applications of ALWAs across different industries. ALWAs are currently in the research phase due to various limitations compared to the availability of the various natural aggregates that form more durable solutions. However, researchers have discovered that certain artificial aggregates prioritize weight over strength, allowing for the effective use of ALWAs in applications like pavements. We thoroughly studied the various ALWAs discussed in this article and found that fly ash and construction waste are the most diverse sources of primary material for ALWAs. However, the production of these aggregates also presents challenges in terms of processing and optimization. This article’s case study reveals that ALWAs, consisting of 80% fly ash, 5% blast-furnace slag, and only 15% cement, can yield a sustainable solution. In the single- and double-step palletization, the aggregate proved to be less environmentally harmful. Additionally, the production of ALWAs has a reduced carbon footprint due to the recycling of various waste materials, including aggregates derived from fly ash, marble sludge, and ground granulated blast-furnace slag. Despite their limited mechanical strength, the aggregates exhibit superior performance, making them suitable for use in high-rise buildings and landscapes. Researchers have found that composition plays a key role in determining the application-based properties of aggregates. This article also discusses environmental and sustainability considerations, as well as future trends in the LWA field. Simultaneously, recycling ALWAs can reduce waste and promote sustainable construction. However, this article discusses and researches the challenges associated with the production and processing of ALWAs.