This study focused on the quick initial setting time and the expansion strain that occurs during the early aging of α-calcium sulfate hemihydrate (αHH) and examined the setting, compressive strength, and shrinkage strain of αHH-replaced cement mortar. The results show that the initial setting time significantly decreased with an increase in the αHH replacement ratio. Drastic occurrence of ettringite was observed early in the aging of cement mortar when αHH was substituted into the cement; however, the ettringite was not converted to monosulfate with increasing age and thus was not favorable for the development of the compressive strength. When αHH was substituted into cement, using Portland blast-furnace slag cement (PSC) was more advantageous than using ordinary Portland cement (OPC) for the development of the compressive strength. Meanwhile, the expansion of early age αHH can decrease the shrinkage strain of cement mortar. The generation of ettringite is more effective when αHH is substituted into PSC than into OPC and is thus more effective in suppressing the shrinkage strain.