The need to substitute cement with eco-friendly building materials has increased in recent years, and attempts to enhance the mechanical and thermal insulation properties of these materials are ongoing. Therefore, the present study aims to use two different types of scoria as substitutes for cement in building materials and investigate the impact of thermal treatment on improving mechanical characteristics and thermal insulation. Black and red volcanic scoria, both before and after thermal treatment at different temperatures (600, 700, 800, and 900 °C), were utilized as cement substitutes in concrete specimens. Concrete specimens with different proportions (0–30 % wt.%) of black and red scoria were cured for different durations (14, 21, 28, and 91 days), and then tested for compressive strength. The compressive strength of specimens increased with increasing curing time, but decreased when scoria content exceeded wt.10 %. Furthermore, thermal treatment positively impacted the compressive strength of concrete specimens with red scoria, but negatively affected those with black scoria, owing to the increase in crystalline phases with increasing temperature. The specimen containing 10 % red scoria thermally treated at 900 °C and cured for 91 days yielded the highest compressive strength (60 ± 1.22 MPa). Further, the thermal insulation analysis of the concrete specimens with each type of thermally treated scoria was performed on day 28 of curing. The thermal insulation increased as the proportions of black and red scoria increased, which involved increasing the thermal treatment temperature of both scoria from room temperature to 900 °C on day 28 of curing. Additionally, the thermal insulation of concrete specimens treated with red scoria was more optimized than that of concrete treated with black scoria, particularly at high thermal treatment temperatures, and more than seven times as much as that of ordinary concrete. The lowest thermal conductivity value of the specimen was 0.157 ± 0.01 W m−1 K−1. Based on the findings, concrete with thermally treated red scoria is a suitable eco-friendly building material with high compressive strength and efficient thermal insulation properties.