Limestone of the purity mandated by the standards for use in cement manufacture (as raw material or as performance improver) is only a fraction of the mined material. Sometimes, limestone contains impurities like silica, clay, dolomite etc. beyond the levels specified for use as an additive or for cement production. This limestone, commonly known as low-grade limestone, also may have a potential to be used as a supplementary cementitious material. This paper reports a study conducted to understand the hydration behaviour of ordinary Portland cement in combination with low-grade limestone. Low-grade limestone samples with dolomite, silica and clay impurities were collected from various limestone mines in India and used in cementitious blends at various replacement levels after suitable processing. Reaction kinetics was studied using calorimetry and phase assemblage using techniques like X-ray diffraction and thermogravimetry. Mercury intrusion porosimetry was employed to study the microstructure of cementitious blends. Dilution effect of low-grade limestone was studied by measuring compressive strength of cement mortar cubes for various replacement levels. Shortening of induction period, increased peak heat rate and reduced time to peak were observed in the blends of ordinary Portland cement with low-grade limestone. Carboaluminate formation, ettringite stabilisation and higher bound water content were also seen. The studies showed that low-grade limestone also can be used as a partial replacement for ordinary Portland cement without compromising the strength up to 15% replacement. Higher replacement levels, although showing a reduction in strength due to dilution effect, could still be considered for non-structural applications.