This study aimed to optimize the utilization of industrial solid waste through developing a high-performance cement-based composite material (UHP-ECC), incorporating coal furnace slag (CFS) and waste rubber powder (RP). The investigation concentrated on the effects of introducing 10% RP into UHP-ECC and replacing ordinary Portland cement (OPC) with CFS at varying proportions (0%, 20%, 40%, 60%) on mechanical properties, impact resistance, and sustainability. The mixtures underwent a comprehensive characterization, including mechanical tests, thermogravimetric analysis (TGA), and scanning electron microscopy (SEM), to clarify hydration mechanisms and microstructural features. The results revealed that the addition of 10% rubber led to flaws, resulting in a minor reduction in compressive strength from 143.2 MPa to 132.2 MPa. Substituting 20% with CFS resulted in a denser matrix, raising the compressive strength to 135.5 MPa. CFS decreased the initial cracking strength and matrix fracture toughness, with tensile strain peaking at 8.05% and narrower crack widths. More CFS content yielded a slight decrease in peak impact force but induced more fine cracks and enhancing ductility. Moreover, as CFS is a waste product generated at high temperatures, the mixture demonstrated outstanding impact performance at 150 °C, absorbing rather than converting more energy into kinetic energy. Comparative analysis against similar mixtures highlighted UHP-ECC's strengths in embodied carbon, embodied energy, and material cost. The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) assessment identified the CFS40-R10 as better mixture, achieving a balance between mechanical performance, cost-effectiveness, and sustainability. Microscopic analysis revealed that up to 40% CFS facilitated hydration, and the 60% CFS mixture exhibited the lowest total mass loss at high temperatures.