The present paper focuses on developing a strategy to control the indoor temperature in slum dwellings under redevelopment. The proposed framework aims at improving the building planning and appropriate selection of construction materials along with controlled cost with respect to currently adopted practices. The proposed strategy is elaborated with a case study in Nagpur, India. A single storey, four-room model was planned as per the National Building Code of India. The performance of the model building was evaluated by using energy simulation software TRNSYS. The cellular light-weight bricks used in the construction were made with bio briquette ash (BBA), which is a locally available waste material. Instead of using the conventional reinforced cement concrete (RCC) roof, aluminium and sawdust were suggested as a reflecting-cum-insulating material. To improve the temperature control in model homes, installation of a reflecting-cum-insulating material was conducted, consisting of aluminium and sawdust, over the conventional RCC roof. The model building constructed with these new materials was compared with that built with conventional fly ash bricks and RCC roof. Results show that the proposed model building improved the efficiency of indoor temperature control by 23% and, at the same time, reduced the cost by 13%. The present concept will contribute to the redevelopment of slum dwellings to deliver cost-effective dwelling units that provide occupants with acceptable thermal comfort.