It is becoming a more challenging task to find suitable alternatives to natural aggregate for making concrete, as nearly three quarters of the volume of concrete contained of natural aggregates only. Steel slag is an industrial by-product of steel industry and India is India is the 3rd largest steel producer in the world with total steel production of 95.6 MT per annum. It possesses the problem of disposal and is of environmental concern. The industrial waste has been encouraged in construction industries as a substitute for natural resources for many years such as fly ash. Concrete is used more than any other material in the world so the demand for aggregate in construction industry is increasing rapidly. In this paper the physical, chemical and mechanical properties of steel slag are found out and compared with the properties of natural aggregate. It is found that the properties of steel slag are nearly same as that of natural aggregate which enhances the possibilities of utilization of steel slag as substitute for natural aggregate.