In Nepal, traditional clay red bricks have been extensively used in residential and commercial construction, but their labour-intensive nature has prompted the exploration of alternative construction materials. This study investigates the feasibility of using interlocking blocks as a replacement for traditional bricks in residential housing, focusing on cost, strength, and socioeconomic acceptance. Through a combination of literature review, lab tests, and on-site observations, the properties of interlock blocks were evaluated and compared with traditional bricks. The study area, Setipakha Height in Lalitpur, provided a suitable context for data collection, given the prevalent use of interlock blocks in ongoing housing projects. Results from compressive strength tests revealed that interlock blocks exhibited comparable strength to both first- and second-class bricks, indicating their suitability for load-bearing applications. Additionally, interlock blocks demonstrated lower water absorption rates compared to clay bricks, suggesting enhanced durability and resistance to moisture-related issues. Furthermore, interlock blocks showed higher density and consistency, potentially offering greater structural integrity and material efficiency. Cost analysis indicated that interlock block masonry was more cost-effective than traditional brick masonry, with potential savings in construction time and labour requirements. Moreover, interlock blocks, when properly manufactured, could provide a sustainable alternative to traditional bricks, reducing environmental impact. In conclusion, interlock blocks present a promising alternative to traditional clay bricks in residential construction, offering advantages in terms of strength, durability, cost-effectiveness, and sustainability. Recommendations include the adoption of interlock blocks in construction projects, further research on their long-term performance, regulatory considerations, and increased awareness among stakeholders in the construction industry. Embracing interlock blocks has the potential to revolutionize residential construction practices in Nepal, contributing to sustainable development and meeting the housing needs of communities.