This study primarily focused on assessing the feasibility of utilizing textile effluent sludge (TES) in the creation of sustainable building materials, demonstrating the possibility of using this material and eventually generating new market opportunities. The physical, chemical, and mineralogical characterization of textile sludge was carried out after preliminary crushing and grain-size sorting. Five samples collected from the effluent treatment facility of textile industries situated in the Vidarbha region of Maharashtra, India, underwent characterization to explore their potential innovative applications in the construction sector. Various physical tests, such as specific gravity, density, water absorption, and sieve analysis, were performed on these samples. Chemical characterization was carried out using x-ray diffraction, x-ray fluorescence, a field emission scanning electron microscope coupled with energy-dispersive x-ray spectroscopy, Fourier transform infrared spectroscopy, and thermogravimetry/differential thermal analysis. The results obtained demonstrate the potential of TES in the creation of sustainable building materials. In addition, the mix proportion of TES was further optimized using LINGO software to meet the chemical specifications required for cement.