Recycled aluminum salt slag (RASS) is an industrial by-product generated from the melting of white dross and aluminum scraps during the secondary smelter process. Insufficient knowledge in the aspects of engineering characteristics, and the environmental risks associated with RASS, is the primary barrier to the utilization of RASS as a substitute material for natural quarry materials in the field of geotechnical construction. In this research, comprehensive geotechnical and environmental engineering tests were conducted to evaluate the feasibility of utilizing RASS as a sustainable geomaterial. This was undertaken by comparing the laboratory testing results for RASS with a well-known recycled material, namely recycled concrete aggregate (RCA), and the relevant specifications set forth by the local road authority. The geotechnical engineering assessment included particle size distribution, flakiness index, organic content, pH, particle density, water absorption, modified Proctor compaction, aggregate impact value, Los Angeles (LA) abrasion, hydraulic conductivity, and California bearing ratio (CBR). The CBR results of the RASS samples satisfied the minimum CBR value (>80%) for usage as pavement subbase material in road construction. In addition, the repeated load triaxial (RLT) tests were carried out on the RASS samples to assess the response of the RASS under cyclic loading conditions. Furthermore, a range of chemical tests, consisting of leaching and polycyclic aromatic hydrocarbon tests, were also performed on the RASS to address the environmental concerns. Comparing the chemical test results with the environmental protection authorities’ guidelines provided satisfactory evidence that RASS will not pose any environmental and health issues throughout its service life as a geotechnical construction material.