Substantial quantities of construction and demolition waste (CDW) are generated globally, much of which is disposed off in landfills. A notable fraction of this waste is constituted by concrete waste. Research efforts have examined the feasible recycling of concrete waste derived from CDW across diverse applications. In the present study, concrete waste was subjected to processing and subsequently recycled as aggregates for the fabrication of sustainable concrete blocks. The waste was meticulously classified into coarse and fine aggregate fractions to enable optimal utilization. Well-optimized formulations of recycled aggregates and cementitious binders were devised to manufacture the concrete blocks. To augment the compressive strength, fibres were integrated into the mixture, functioning as reinforcement to minimize crack propagation through a bridging mechanism. The blocks underwent curing durations of 7 and 14 days. Compression testing indicated substantial enhancements in strength, with the incorporation of cement and fly ash contributing to improved compressive characteristics. Moreover, fibre reinforcement proved effective in postponing crack initiation and propagation. A comparative analysis between concrete blocks fabricated with natural aggregates and recycled aggregates, taking into account both reinforced and unreinforced configurations, showed that fibre reinforcement plays a significant role in increasing the compressive strength of the recycled aggregate concrete blocks.