Fly ash from fluidized bed combustion of peat and wood is a promising material for partial cement replacement. Experiments conducted on mortars in which 20% of the cement was replaced with fluidized bed combustion fly ash (FBCFA) revealed that 28-day compressive strength can be almost as high as for reference samples in which cement was not replaced is possible to reach. FBCFA in cement can also produce higher compressive strength as coal fly ash and significantly higher strength than limestone filler. FBCFA can decrease the workability of fresh mortar due to its highly irregular particle shape, however, if ash is milled, it could be used even without an additional superplasticizer. The effect of FBCFA on chemical durability and sulfate attack resistance of mortar did not differ significantly from those of coal fly ash and limestone filler.