Sugar sediment waste was incorporated into the raw material mix for the production of Autoclaved Aerated Concrete, and was demonstrated by extensive testing to provide greater compressive strength than conventional materials, and an extended time lag. In addition, the use of this otherwise waste material was demonstrated to be highly beneficial both economically and environmentally. Sugar sediment is a waste product of the sugar refining industry in Thailand, and is available in huge quantities. The optimum composition obtained had sugar sediment content of 30% by weight replacement of sand and 7.5% by weight of lime. The resultant product showed a maximum compressive strength of around 6.1 N/mm(2) and the highest proportion of tobermorite phase of 28.9%. The higher strength can be confirmed by a higher crystalline tobermorite phase. The surface of the Autoclaved Aerated Concrete is a finer needle-like crystalline morphology. The Autoclaved Aerated Concrete consisting of the optimum sugar sediment content also extended the time for the heat wave to propagate from the outer wall to the inner wall. This study also considered the environmental, economic and health impacts of removing a substantial quantity of the industrial waste product from landfill sites. (C) 2014 Elsevier B.V. All rights reserved.