During the last decade, the growing load of sludge from textile industries, the top foreign exchange earning sector of Bangladesh, is a common nuisance to environmental system and community health. The present study was aimed to minimize the environmental impact from the disposal of Electrocoagulated Metal Hydroxide Sludge (EMHS) by using it as a partial substitute of clay in the manufacturing of construction material like building blocks (BBs). Different batches of normal and pressurized building blocks (NBBs and PBBs, resp.) were prepared using up to 50% EMHS with clay and then fired at a particular temperature. EMHS proportion in the mixture and firing temperature were two key factors determining the quality of BB. BB did not show any deformation or uneven surfaces at any of the examined firing temperature. At higher firing temperature and EMHS proportion, more weight loss and shrinkage of BB were noticed. Higher compressive strength and lower water adsorption were found at lower EMHS content and higher firing temperature. It was explored that NBB and PBB with 20 and 30% EMHS in clay, respectively, and fired at 1050 °C would be usable for nonloading applications; namely, ornamental bricks, decoration purposes, and fence of garden.