Each year, hundreds of millions of tons of processed sugarcane generate, by weight, 25 to 30% of bagasse as waste, whose destination is combustion for energy cogeneration. This research proposes an alternative and more sustainable use for this waste. The use of sugarcane bagasse (SCB) as the single aggregate in composites for building blocks was studied. The raw bagasse was used without any treatment. As the binder, aerial lime and/or soil were used. Both provided enough mechanical strength for non-load-bearing walls. The composite of SCB with soil achieved the best performance in terms of mechanical resistance: 2.6 MPa in compressive strength and 2.1 MPa in bending strength, while the composite of SCB with lime achieved 1.76 MPa and 1.7 MPa, respectively. The higher number of fibers in the SCB/lime mixture provides better thermal insulation than clay brick or conventional concrete, such as “hempcrete”. The lime composites obtained greater water resistance and less loss of mechanical strength when saturated. However, the higher water absorption coefficient makes it necessary to apply a waterproof mortar on surfaces exposed to the weather. The replacement of supplied blocks by SCB blocks can offer a better and more economical solution that improves the quality of the built environment and is more ecofriendly.