Rapid urbanization has negative effects on ecology, economics, and public health, primarily due to unchecked population growth. Sustainable building materials and methods are needed to mitigate these issues and reduce energy use, waste production, and environmental damage. This study highlights the potential of agricultural waste as a sustainable source of construction materials and provides valuable insights into the performance and benefits of using fired clay bricks made from pomegranate peel waste. In this study, fired clay bricks were produced using pomegranate peel waste as a sustainable building material. To optimize the firing temperature and percentage of pomegranate peel waste, a series of experiments was conducted to determine fundamental properties such as mechanical, physical, and thermal properties. Subsequently, the obtained thermal properties were utilized as input data in Design Builder software version (V.5.0.0.105) to assess the thermal and energy performance of the produced bricks. The results showed that the optimum firing temperature for the bricks was 900 °C with 10% pomegranate peel waste. The fabricated bricks reduced energy consumption by 6.97%, 8.54%, and 13.89% at firing temperatures of 700 °C, 800 °C, and 900 °C, respectively, due to their decreased thermal conductivity. CO2 emissions also decreased by 4.85%, 6.07%, and 12% at the same firing temperatures. The payback time for the bricks was found to be 0.65 years at a firing temperature of 900 °C. These findings demonstrate the potential of fired clay bricks made from pomegranate peel waste as a promising construction material that limits heat gain, preserves energy, reduces CO2 emissions, and provides a fast return on investment.