In this study we collate existing knowledge and suggest a possible methodology for construction on environmentally challenged backfilled mines to restore the sustainability of human settlement. The possibility of reconstruction on a backfill soil with a sustainable solution has been explored. The study highlights the issue of subsidence in backfilled opencast mines through a meticulous understanding of different case studies of construction on mine spoil. The prime focus of the study apart from structural and construction aspects includes the behaviour of heterogeneous mine spoil. Collapse settlement and hydrocompression are discussed to develop an understanding of failure in backfill. The study also incorporates the proposition of possible effective ground improvement treatment for improving soil behaviour through effective utilization of demolished concrete waste material. Further, ground improvement through demolished waste stone column has also been discussed. Finally, a feasible method for constructing a low-rise building on back-filled soil is proposed with available experimental data on bearing capacity. This study along with a comprehensive list of references may prove useful for conducting further research and a thorough understanding of the issues faced by the mining sector in India and other developing countries.