In recent years, several studies have reported the recycling of by-products generated by the paper industry and their application to the construction industry. A majority of the existing studies used waste paper sludge ash, and considerable energy is consumed in such incineration processes. This may further contribute to air pollution. In this study, we used waste newspaper (WNP), which underwent a simple crushing process without a separate high-temperature treatment process, and we integrated it in cement mortar. We prepared mortars containing 0%, 0.2%, 0.4%, 0.6%, 0.8%, and 1.0% ground WNP as a cement substitute. Subsequently, the fluidity, compressive strength, tensile strength, carbonation depth, drying shrinkage, and microstructure of the mortars were compared and analyzed. The 28-day compressive strength of the mortar samples with WNP was approximately 3.2–16.1% higher than that of the control sample. The 28-day accelerated carbonation depth of the samples with WNP was approximately 1.03–1.61 mm. Furthermore, their carbonation resistance was approximately 5.2–39.4% higher than that of the control sample. Compressive strength, tensile strength, and carbonation resistance were improved by appropriately using ground WNP as a cement substitute in cement mortar. In this study, the appropriate amount of WNP according to the mechanical properties of cement mortar was found to be 0.4–0.8%, and considering the durability characteristics, the value 0.6 was the most ideal.