<p>The utilization of river sand in the construction industry increases the demand and forms a several environmental impacts by degradation of river beds. It is very crucial to find the alternative materials for the sustainable development. Granite dust, M-sand, and palm oil fuel ash (POFA) are three of the most abundantly produced industrial by-products, yet their potential use as precursors and alternative fine aggregates has not been fully explored. This study comprehensively investigates the effects of incorporating varying proportions (0–50%) of granite dust into M-sand within both heat and ambient-cured alkali-activated binders (AABs) based on sodium (NaOH + Na₂SiO₃) and potassium (KOH + K₂SiO₃). POFA is utilized as a source material, replacing slag at levels of 10%, 20%, and 30% for the optimized granite dust composition. Extensive laboratory tests were performed to evaluate the physio-mechanical and durability performance of the resulting AABs, including compressive strength, water absorption, sorptivity, acid resistance, and microstructural characterization of the POFA-based alkali-activated samples using advanced analytical techniques. The results indicate that, irrespective of curing temperature, M-sand-based AABs exhibited enhanced setting behavior, compressive strength, water absorption, and porosity properties with up to 30% granite dust substitution. This improvement is attributed to the development of C-A-S-H, N-A-S-H, and K-A-S-H gel phases. In POFA-based AABs, the dense packing of POFA resulted in reduced water absorption and sorptivity compared to control specimens. Overall, the findings suggest that POFA, as a pozzolanic material, significantly improved the properties of granite dust-based AABs, offering a sustainable solution for mitigating the environmental impact and disposal challenges of industrial waste.</p>