The European Green Deal, which emphasizes zero-waste economies, and waste recycling in construction and building materials, has arisen due to significant worldwide needs for solid waste recovery and usage. This ambitious study focuses on recycling mixed construction and demolition (C&D) waste into burnt bricks and investigating the influence of firing temperature. While pursuing its objectives, this is dependent on raw material characterization and burnt-brick product quality assessment. The recycling of mixed C&D waste is explored by mixing the waste into two soil types (alluvial and laterite) in ratios ranging from 5% to 45% at three firing temperatures (700 °C, 850 °C and 900 °C). The utilization of mixed C&D waste in amounts of 10% at 700 °C and 25% at 850 °C and 900 °C fulfilled the Indian standard. Although a fire at 700 °C results in less optimal waste utilization, it is beneficial and recommended for reducing the carbon footprint and energy use. Additional mineralogical and microstructural analyzes are performed on the optimal fired samples. The study’s findings are promising for sustainable resource usage, reducing carbon footprint, and reducing waste disposal volume. This research is a big step toward the Sustainable Development Goals of the United Nations and a circular economy.