In this study, the effects of zeolite with an alkaline solution prepared combining Na2SiO3 and NaOH on the compressive strength, water absorption and block density of aerated concrete were investigated. Further, the effect of varying concentrations of the hydrophobic material i.e., aluminium stearate powder (1%, 3%, and 5%) on mechanical and durability properties are also investigated. The results of the study showed that the use of zeolite with an alkaline solution improved the compressive strength of the aerated concrete blocks. The blocks made with 5% aluminium stearate powder had the highest compressive strength and lowest block density and water absorption, followed by those made with 3% and 1% aluminium stearate powder. The porosity of the aerated concrete blocks decreased with the addition of zeolite and increased with the addition of aluminium stearate powder. The blocks made with 5% aluminium stearate powder and zeolite had the highest porosity and lowest block density, indicating that the addition of aluminium stearate could help reduce the weight of aerated concrete blocks. In conclusion, the use of zeolite with an alkaline solution and aluminium stearate powder heat cured using an accelerated curing tank (ACT) can improve the mechanical and durability properties of aerated concrete blocks.