Researchers have continuously attempted to reduce and recycle construction waste. Ceramic waste is mainly a byproduct of the manufacturing process. About 25% of the waste is produced because of dimension defects or incurring problems throughout the industrial process. This article aims to highlight the alternative uses of ceramic waste. In this research, ceramic waste at a powder status is reduced to fine aggregates. Here, ceramic waste powder (CWP) is used in different ratios of 25%, 50%, 75%, and 100% replacing the fine aggregate weight. Aluminum powder is used to obtain aerated concrete (AC). Glass fibers are added in ratios of 1%, 1.5%, and 2% of cement weight to obtain a fiber‐reinforced AC. The unit weight, compressive strength, splitting tensile strength, and thermal conductivity are estimated. Furthermore, scanning electron microscopy is performed to investigate the microstructure features of the composite. The results exhibit better performance in compressive and splitting tensile strength when fine aggregates were replaced by 25% and 50% of CWP. In addition, 1.5% of GFs enhance the compressive and splitting tensile strength. In addition, increasing the CWP decreases the unit weight of fiber‐reinforced AC. It is shown that CWP strongly influences the thermal conductivity of the fiber‐reinforced AC, resulting in a high composite resistant to heat transmission. The technique for order preference by similarity to an ideal solution method is used to obtain the optimal mix.
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