In the coastal areas, dredging operations are undertaken for creation, draft enhancement and maintenance of navigable channels for port and harbor activities. Dredging may also be performed in rivers or reservoirs for similar reasons. The dredged sediments may be disposed at on-land or oceanic sites. In the recent years, inexpensive ocean dumping is being eliminated as a disposal alternative, causing a crisis in the management of sediment. In construction industry, production of concrete creates heavy demand on the supply of raw materials for cement and also aggregates for concrete. In many locations, habitat restoration and tidal flat creation also generates demand of fine aggregates. It has been observed that at several sites, supply from quarry is not always an economic and feasible option. Sustainable solution to both the aforementioned problems is re-using the sediments from river and ocean in construction industry or bio-diesel production. Various applications attempted in construction industry include those for production of cement, as fine aggregate in concrete, in construction of pavements, in production of lightweight concrete, among others. This article presents a review of approaches employed to recycle dredged sediments in construction industry and biodiesel production.