Nowadays, rapid population growth and industrialization have increased the demand for concrete in construction. Since aggregates make up 60–70% of the volume of concrete, it is inevitable that an enormous amount of natural aggregates are consumed globally. Therefore, manufacturing waste into lightweight coarse aggregates can be a promising solution to the concern. This paper explores the potential and the process of manufacturing municipal woody biomass waste ash (MWBA) into artificial coarse aggregate by the cold-bonded method. The effects of two different fineness of MWBA (passing through 1 mm and 0.25 mm size aperture sieve) and various binder contents (0%, 5%, 10%, 15%, 20%) on the granulation efficiency (GE) and granulation duration (GD) of the municipal woody biomass waste ash aggregate (MWBAA). In addition, the impact on the properties of MWBAA, such as loose bulk density (LBD), water absorption (WAB), and crushing strength (CS) were investigated. The results indicated that MWBAA with LBD of 760.2–1124.7 kg/m3, WAB of 15.5–35% and CS of 0.35–2.61 MPa could be produced. The unburned wood ash had a minimal effect on the LBD and CS of the MWBAA with 10% OPC content and above. However, the scanning electron microscopy (SEM) image revealed that the unburned wood ash in 1 mm MWBA contributed to the higher water absorption of the MWBAA, and the water absorption property of MWBAA could be improved by removing the unburned wood ash particles from MWBA using a 0.25 mm sieve.