In Pakistan, ceramic industry has been known to produce large quantities of waste that have become an environmental concern due to their misplace disposal. Solutions to reuse and incorporate industrial ceramic waste can be rewarding for many reasons, specifically for environmental, economic and technical aspects. In the present study, three ceramic waste collected from the premises of ceramic factories located in Hayatabad industrial zone, Peshawar, KP, Pakistan are characterized. Chemical composition of this waste was determined by energy dispersive X-rays spectroscopy (EDX) which showed that the waste is the mixtures of various metal oxides. The effect of chemical composition was observed in the variation of physical properties of the materials. Many physicochemical parameters such as thermo gravimetric analysis (TGA), scanning electron microscopy (SEM), dielectric properties and rheology were investigated in detail. TGA confirmed that the materials are thermally stable up to 700 °C with a little weight loss. Extensive dielectric properties such as dielectric constant, dielectric loss, capacitance and conductivity in the frequency range from 1 MHz to 3 GHz at ambient temperature showed that ceramic waste will be best alternatives for application in embedded capacitors. Absorption behavior of the ceramic waste was checked for methyl orange dye based waste water. All the samples succeeded in removing the dye from the water with absorption efficiency in the range 30–60%. Rheology studies showed that the materials are mechanically rigid and stiff drawing attention to the reusability of these waste in mechanically tough composites. Microstructures and chemical composition of the waste were found to have key factors for rheological characteristics.